Often Agribank is inundated with enquiries from public members on whether one can apply for an Agribank loan and/or is eligible for various loan products of the Bank.
The public is hereby informed that Agribank exists to serve all Namibians with interest in agribusiness to enhance growth in agriculture, ensure national food security, promote sustainable employment, and improve overall economic growth.
In serving the Namibian community, Agribank have introduced various schemes with distinct features, through which individuals can access loan products.
These features therefore serve as guidance to individuals considering taking up Agribank loans in promoting agriculture related projects in the country. Once a potential client approach Agribank, such a client is subjected to a screening process which determines the scheme through which he/she may apply.
Overall, there are four schemes through which a client may apply.
Firstly, if one is employed and do not own a fixed property(ies) to serve as collateral. Such a client can apply for a loan under the No-Collateral loan scheme, and the monthly repayment will be deducted directly from his/her salary. In this case, the employer of such a client, need to have a signed pay-roll deduction agreement with Agribank.
Secondly, should a client be a full-time communal farmer, who have no fixed property(ies) to cede as security or collateral for the loan, such a client is advised to apply for a loan under the Emerging Retail Financing Product loan scheme.
The third scheme is for clients who own a fixed property which they can provide as security in form of fixed properties (house, farmland with title deed, undeveloped erven) or fixed investments. Lastly, should a client be a youth between 18 and 35 years of age, or a woman (no age limit) or an agri-professional ( no age limit), one can apply under the Women and Youth loan scheme.
Under the Women and Youth scheme the Bank can offer unsecured loans to individuals or entities who do not have collateral, provided that there is an offtake agreement in place to be provided by a client.
While there are specific requirements for each scheme, there are also general requirements for all loan products. These include, applicants must have a clean credit record, they can either be full or part time farmers, should be Namibian citizens with valid identification, passport or driver’s license and marriage certificate if applicable.
Applicants must also provide quotations from registered dealers/suppliers. In case of companies or co-operatives they should provide audited financial statements, certificate of registration, association agreement, shareholders or directors of the company and must have a registered auditing firm.
Lastly in line with its digital innovation strategy, the Bank introduced the Sales Automation Initiative (SAI) in March 2021, allowing a transparent on-line application experience that reduce the loan turn-around time. As such, applications can either be online or at any of the branches country-wide.
