FARM PRODUCE (AGRO-TRADERS) OFFTAKERS LOAN
INDIVIDUAL LOAN
PRODUCT FEATURES
- The farm produce Off Takers loan is designed to provide capital finance to Agro-Traders who specifically commit to offtake farm produce from farmers that have been financed by NEEF.
TARGET MARKET
- The loan will be accessible by both individuals and groups.
- Individual and Group SMEs (Individuals/partnerships/private limited companies).
OBJECTIVES
- Ensure a reliable and profitable market for farm inputs clients.
- Provide assurance for repayment for the loans under the farm inputs.
- Contribute to job creation.
- Entrench agricultural business/entrepreneurship among the farming clientele.
CUSTOMER BENEFITS
- Access to cheap capital for agro-trading business during the winter cropping season.
- Guaranteed access to farm produce for utilization of the loan.
REQUIREMENTS
- Detailed business plan with relevant cashflow projections and an indication of the product demand and supply chain.
- Business profile including relevant business licenses and certificates for existing farming businesses.
- Clean record from credit referencing bureau.
- National ID(s) by individual client and all group members.
- Legally binding contract for market for the produce that will be off taken.
- Introduction letter by Village Head/Traditional leader.
- Bank statement (minimum of 6 months).
- Business records (income statement, balance sheet, cashflow statement) for existing farming businesses.
- Physical collateral (see collateral requirements).
- Sketch Map (residence and business premises).
- Guarantors letter and his/her National ID.
- Spouse consent letter (where applicable) and his/her National ID.
- Memorandum and articles of association for private limited companies.
- Passport size photo (c olor).
- Covenanted producer agreements where possible.
- Proof of Warehousing and Safe Storage availability for medium size clients.
THRESHOLD
- Minimum Mwk 100,000,000.00 Maximum Mwk 250,000,000.00.
TENURE
- Maximum : 12 months.
- Grace Period : Max 4 months.
RATES/TARRIFS
- Interest rate 2.5% pm.
- Processing and Admin fee 4.5%.
- Life insurance 1.5%.
- Collateral insurance – based on collateral value.
SECURITY AND COLLATERAL REQUIREMENTS
The following Assets will be used collateral for these loans:
- Landed property (Registered land).
- Motor Vehicles.
- Woodlots and Orchards (Registered).
- Registered Plant and Equipment (Financed or Otherwise).
- Insured crops and crop produce in bonded warehousing.
Security for the loans will be a combination of any of the following:-
- Legal charge over landed property for 100% of the value of the equipment financed (if available).
- Registration of movable machinery and equipment.
- Individual and business guaranteed.
- Collateral insurance covering the equipment being financed, crops or livestock with NEED’s interest noted and credit life insurance to cover death in case of individual and smallholder farmers.
GROUP LOAN
PRODUCT FEATURES
- The farm produce Off Takers loan is designed to provide capital finance to Agro-Traders who specifically commit to offtake farm produce from farmers that have been financed by NEEF.
TARGET MARKET
- The loan will be accessible by both individuals and groups.
- Individual and Group SMEs (Individuals/partnerships/private limited companies).
OBJECTIVES
- Ensure a reliable and profitable market for farm inputs clients.
- Provide assurance for repayment for the loans under the farm inputs.
- Contribute to job creation.
- Entrench agricultural business/entrepreneurship among the farming clientele.
CUSTOMER BENEFITS
- Access to cheap capital for agro-trading business during the winter cropping season.
- Guaranteed access to farm produce for utilization of the loan.
REQUIREMENTS
- Detailed business plan with relevant cashflow projections and an indication of the product demand and supply chain.
- Business profile including relevant business licenses and certificates for existing farming businesses.
- Clean record from credit referencing bureau.
- National ID(s) by individual client and all group members.
- Legally binding contract for market for the produce that will be off taken.
- Introduction letter by Village Head/Traditional leader.
- Bank statement (minimum of 6 months).
- Business records (income statement, balance sheet, cashflow statement) for existing farming businesses.
- Physical collateral (see collateral requirements).
- Sketch Map (residence and business premises).
- Guarantors letter and his/her National ID.
- Spouse consent letter (where applicable) and his/her National ID.
- Memorandum and articles of association for private limited companies.
- Passport size photo (c olor).
- Covenanted producer agreements where possible.
- Proof of Warehousing and Safe Storage availability for medium size clients.
THRESHOLD
- Minimum Mwk 100,000,000.00 Maximum Mwk 250,000,000.00.
TENURE
- Maximum : 12 months.
- Grace Period : Max 4 months.
RATES/TARRIFS
- Interest rate 2.5% pm.
- Processing and Admin fee 4.5%.
- Life insurance 1.5%.
- Collateral insurance – based on collateral value.
SECURITY AND COLLATERAL REQUIREMENTS
The following Assets will be used collateral for these loans:
- Landed property (Registered land).
- Motor Vehicles.
- Woodlots and Orchards (Registered).
- Registered Plant and Equipment (Financed or Otherwise).
- Insured crops and crop produce in bonded warehousing.
Security for the loans will be a combination of any of the following:-
- Legal charge over landed property for 100% of the value of the equipment financed (if available).
- Registration of movable machinery and equipment.
- Individual and business guaranteed.
- Collateral insurance covering the equipment being financed, crops or livestock with NEED’s interest noted and credit life insurance to cover death in case of individual and smallholder farmers.
OPENING HOURS
MONDAY – FRIDAY
7:30 AM – 4:30 PM
CONTACT US
NATIONAL ECONOMIC EMPOWERMENT FUND
P.O BOX 779, LILONGWE
PHONE # : +265 999 941 333 | +265 999 938 333
EMAIL: info@neef.mw