AGRO BUSINESS LOANS

Whether you are an individual, Company, SACCO or Co-operative society, our Agro-support loans can be customized to meet your exact needs & in turn, grow your business.

PRODUCT DESCRIPTION

Agro-Support loans are intended to finance Agro-based business/activities in the entire value chain specifically individuals, Companies, SACCOs and co-operative Societies involved the agricultural sector i.e. production, processing and marketing of products, animal production (diary, poultry and piggery projects), fishing and fish farming, bee keeping as well as food processing i.e. grain mills, oil mills and hullers.

PRODUCT FEATURES

• Individual production loans up to UGX 5Million
• Individual/Companies involved in processing and Marketing of up to UGX 100Million
• Grace period of four months for seasonal crop farming and six months for individuals /companies involved in processing and marketing.
• Maximum Loan to Value ratio of 80% of Forced Sale Value of the landed property.

ELIGIBILITY

For individual borrowers;
a. Applicant should be 18 years and above
b. Borrower must have a minimum of 4 seasons (2 years) experience in the agricultural activity to be financed with ascertainable cash flows.
c. Enterprise must be carried out on a profitable/commercial scale
e. Evidence of Farming Contract between the buyer and farmer where applicable.
f. Proof of additional source of income where applicable.
g. Possession of an account with CIB
h. Good credit history for the existing borrowers
i. Valid Identification (National ID)
j. Ownership of farming land

For Groups/Associations/Co-operatives

a. The Group/Association should be legally registered
b. It should have a written constitution and rules governing its operations
c. It should have clear structures clarifying roles within the association
d. There should be a close match between the activities and the group’s experience and financial capacity
e. The group should tend to concentrate on relatively high value produce rather than low value staples
f. Approved maximum liability from registrar of co-operative s for Co-operatives.

COLLATERAL ELIGIBILTY

a. Guarantees from partners and government
b. Land titles
c. Land sales agreements for amounts up to UGX 1,000,000 supplemented by joint/group guarantees.
d. Ware House receipts
e. Forward contracts from vetted institutions/buyers
f. Comprehensively insured equipment/machinery
g. Registered Group and Association guarantees

FOR COMPANIES

a. Filled application form
b. Copy of the trading licence
c. Memorandum and Articles of association
d. Company form 7 and form 8 (where applicable)
e. Registered company resolution to borrow
f. Certificate of incorporation
g. Audited accounts for the last two years
h. Proof of source of income and projected cash flows for the loan term.
i. A copy of the acceptable collateral’s ownership document (Land title, car log book)
j. Copy of valid identification for the directors
k. 2 recent coloured passport size photos for the applicant
l. A bank account statement from the applicant’s other bankers for at least 6 months (If the applicant has not been banking with).

FOR INDIVIDUALS

a. Filled application form
b. Copy of the trading license
c. Audited accounts for the last two years
d. Proof of source of income and projected cash flows for the loan term.
e. A copy of the acceptable collateral’s ownership document (Land title, car log book)
f. Copy of valid identification for the directors
g. 2 recent coloured passport size photos for the applicant
h. A bank account statement from the applicant’s other bankers for at least 12 months (If the applicant has not been banking with Cairo Bank)