Biomass Scheme

If you are passionate about agriculture and are a biomass producer or processor, Agribank invites you to discuss our Biomass Financing Scheme, designed specifically for you! This scheme supports the production and processing of biomass products and related activities.

Why Biomass?

  • Farm income diversification
  • Sustainable job creation
  • Improved rangeland
  • Climate resilience

Who Qualifies?

  • Producers: An applicant (legal entity or individual) can be the owner of the farm or leasing a farm from which he/she can harvest biomass products. This includes commercial and communal farmers with approval from the Directorate of Forestry.
  • Processors: An applicant can also be a processor (legal entity or individual) who buys biomass products (e.g., retail shops/restaurants or export/import companies).

Loan Products

For Producers:
  • Working capital
  • Tractors / trailers
  • Storage sheds
  • Debushing equipment
  • Kilns
  • Personal protective equipment
  • Workers housing including clean water & sanitation

For Processors:

  • Working capital
  • General equipment & Vehicles
  • Maintenance workshop
  • Office to operate from
  • Charcoal processing plant
  • Warehouse & equipment

Loan Term

The loan term is between 2-6 years, depending on the loan type.

Qualifying Criteria & Facilities Offered

For Producers:
  • No collateral is required if the client has an off-take agreement with a processor or retailer.
  • If there is no off-take agreement for biomass products, the client must provide collateral based on existing policy.
  • Loan payments are via monthly debit order.
  • Session of income / Tripartite agreement if debit order is not feasible.

For Processors:

  • Working capital: No collateral if there is an off-take agreement.
  • Capital investment loans are subject to collateral based on the principle of 100% Loan-to-Value.
  • All loan payments are to be done via monthly debit order.

Insurance Requirements

  • Insurance for equipment and plants is required and is the responsibility of the client.
  • All vehicles, tractors, and trucks must be insured from accident and veld fire.
  • Credit life cover is required as per the current arrangement of the Bank.

Interest Rate
The minimum lending rate is 7%, and interest rates above 7% may be adjusted upwards as guided by the pricing policy.

Grace Period
  • 3 Months for Equipment & Vehicles
  • 6 Months for other loan types

Click to view or download the scheme and application form
Date:
23 Jul 2025
Title:
AB Biomass Scheme
Date:
18 Jul 2025
Title:
Agribank Biomass Loan Application Checklist 2025_V1Feb2025.pdf

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FAQ

What type of security must I provide for a loan at Agribank?

Loans are granted against security of fixed property, investment or any other acceptable form of security (fixed deposits, investments and surrendering value of policies). read more

Does Agribank also provide personal loans?

No, Agribank is not a commercial bank. read more

Does Agribank provide loans to first time farmers?

Yes, Agribank can assist you to start farming. read more

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