AGRICULTURAL FINANCE CORPORATION

MACHINERY

Product description

This loan is for the purchase of farm machinery to facilitate production and transportation of farm produce. This is a direct response to the low uptake of technology and mechanized agriculture that continues to negatively impact on productivity levels. Apart from the convenience, increased mechanization and yields, an individual who comes for this loan product is assured of getting extra revenues from their farm machinery through hiring out to those who don’t have it.

Features

• Repayment of 2-5 years with annual installments
• Designed for individual & groups

Items Financed

• Farm machinery and implements.
• pick-up and truck for transport of farm produce

Requirements/Eligibility

1. Machinery/vehicle to be registered jointly with afc
2. Provide a written quotation from reputable suppliers
3. Machinery to be insured with comprehensive insurance cover
4. Minimum deposit of 30% of net purchase price for new machinery and 50% deposit for reconditioned machinery
5. Provide a written quotation from reputable suppliers

AGRIBUSINESS

Product description

These are loans designed to benefit agri-business traders. It is meant to provide start-up capital for those seeking to start, or are engaged in agricultural microenterprises. There exist huge opportunities for the youth in agricultural micro and small medium enterprises across the value chain. Thus, beneficiaries of this loan facility will engage in wealth creation and for those unemployed, resolve their unemployment challenges.

Features

• Designed for individual & groups
• Repayment period up to 3years
• Interest rate is 15% per annum

Items Financed

• Marketers and processors farm produce
• Traders, transporters, marketers and processors farm produce.

Requirements/Eligibility

1. Viability of the business
2. Viability of the business
3. Tangible security for the loan
4. 20 % equity contribution towards the project.

LIVESTOCK AND FISHERIES DEVELOPMENT

Product description

These are loans for livestock and fisheries production. The livestock sector contributes about 12% of Kenya’s Gross Domestic Product, 40% to the agricultural GDP and employs 50% of agricultural labor force. Thus, it is an area with huge potential for individuals to invest in as a business

Features

• Repayment period 2-5 years at annual installments
• Designed for individual & groups

Items Financed

1. Dairy and beef production.
2. Sheep and goat production
3. Bee keeping
4. Piggery and poultry product
5. Working capital
6. Fish production

Requirements/Eligibility

1. Tangible security for the loan
2. Suitability of the project
3. Experience in the enterprise livestock & fish production

CASH CROP

Product description

The credit facility for cash production of tea, coffee, Sugarcane, pyrethrum, cashew nuts, citrus, mango trees, bananas, stevia and other cash crops.

Features

• Repayment of 2-5 years with annual installments
• Designed for individual & groups

Items Financed

• Crop establishment, crop maintenance.
• Processing equipment, operating costs

Requirements/Eligibility

1. Tangible security for the loan
2. Appropriate and approved crop varieties
3. Availability of processing facilities within reasonable distances.

STAWISHA GROUP LOAN

Product description

A micro-credit facility targeting groups trading in agricultural produce and agricultural inputs particularly the youths and women who have no tangible security to secure credit. Stawisha Group Loan is in 3 levels which will allow groups to access a higher amount as they successfully grow their business. The challenges facing this target group, such as unemployment and poverty can be addressed by accessing funding and engage in enterprises across the agricultural value chain.

Features

• Loan amount range from ksh. 5,000 – ksh.1,000,000
• Repayment period from 12 -36 months
• Flexible security -group guarantee and group savings.
• Affordable interest
• Flexible repayment period
• Opportunity to graduate to the next level of credit scheme
• Fast processing

Items Financed

• Groups trading in agricultural produce and agricultural inputs

Requirements/Eligibility

1. Active group undertaking agricultural related activities
2. Vuna account holder
3. Minutes from the group stating the resolution to borrow the loan.
4. Guarantee-by group members and group officials.
5. 15% interest per annum.