Agribank adjusts interest rates

11 Dec 2018

Interest rates for some Agribank products will see a modest increase of 0.75 percent (75 basis points) effective 1 December 2018. The salary backed no collateral loan product will increase with 1 percent (100 basis points). Notwithstanding the increase in some products, the Government subsidised interest rates will remain unchanged at 4 percent, while penalty interest rate on arrear balances are unchanged at 2 percent. Overall, the Bank’s interest rates remain competitive relative to the market.

Subsidised loans are loans to communal farmers under the National Agricultural Credit Programme (NACP) and resettled farmers under the Post Settlement Support Fund (PSSF). The NACP was established in 1995 for communal farmers to access credit in order to increase food production and become surplus producers, create jobs and alleviate the cycle of poverty. It also serves as a preparatory stage for small scale farmers in communal areas before they could be considered to qualify for the purchase of commercial farmland under the Affirmative Action Loan Scheme (AALS).

The new interest rates per loan type are indicated in the table below:

Loan Type

Previous Rates

New Rates
Subsidised loans 4.00% 4.00%
Short term loans 8.00% 8.75%
Medium term loans 8.75% 9.50%
Long term loans 8.50% 9.25%
NACP non-production loans 7.50% 8.25%
NACP production loans 4.00% 4.00%
Post resettlement support 4.00% 4.00%
Bush control loans 6.50% 7.25%
No Collateral loans 8.00% 9.00%
Arrears penalty 2.00% 2.00%
Existing and prospective clients of Agribank are hereby informed of the change in interest rates.

Issued by:
Sakaria Nghikembua
Chief Executive Officer

For enquiries, kindly contact the Marketing and Communication Division at:
Tel.: 061 2074332
Fax: 061 2074206

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