These are short term or seasonal loans in nature, availed to farmers with buyer contracts to enable them undertake production of crops according to farmer-buyer contracts. Under this arrangement (contract farming), Azania Bank advances working capital facilities to the farmers – individually or in groups (preferably cooperative societies) for them to meet part or whole costs related to farm preparations, procurement of inputs, crop management, harvesting and other related crop production costs. Among other requirements, this product requires the parties to sign a tri-partite agreement indicating the responsibilities for each. Typically, the parties involved in the tripartite are: the bank as financier/provider of financial services, the processor who commits to off-take the crop and the farmer as producer of the crop. Through the tripartite agreement, the off-taker is obligated to pay sales proceeds of the crop through the borrower’s account with Azania Bank where the loan is repaid and the residue is made available for the borrower.
A unique savings product intended for smallholder farmers primarily as a savings account but linked up with farm inputs loans to individual farmers affiliated to a group not exceeding 10 members.
PROJECT FINANCE LOANS
- These are medium to long term loans for agribusiness investment undertakings such as purchase of agricultural equipment, construction of storage facilities, purchase and establishment of green houses for horticultural production, agro processing facilities, and related investments.
- Repayments for these loans are pegged on the projected cash flow of the project.
- Among other forms of collaterals, project finance is secured by project assets and future cashflows.
- Suitable for business entities with existing projects and investing in other projects.
SHORT TERM AGRI LOANS
- These are short term facilities payable in single or multiple installments
- Ideal for traders involved in cattle fattening and/or trading, crop and inputs dealers, warehouse receipt system financing and other similar undertakings.
- Borrower must be in similar business for at least 12 months and must produce evidence related to his/her/their previous business performance in terms of sales records, turnover, receivables/payables, and others.
These are credit facilities intended for facilitating agri-related trade finance arrangements and includes letters of credit, guarantees and foreign exchange deals to ease local and international trade in agri commodities.
For short-term cash flow and working capital needs of the agribusiness; suitable for agri-commodity traders, input suppliers/dealers, processors.
KILIMO BIASHARA SAVINGS ACCOUNT
Kilimo Biashara Savings Account (KIBISA) is a unique savings account offered by Azania Bank to farmers who wish to save from sales proceeds after they have sold their crops. It has the following features:
- Account opened at zero balance
- Zero minimum balance
- Account Dormant after 24 months
- Zero monthly ledger fees
- Visa card – optional
Access to mobile banking and other delivery channels.