Agribank rolls out production stimulus loans
14 September 2020 | Agriculture
Clients will soon be able to apply for production loans at Agribank as part of its coronavirus relief stimulus package.
It announced the package in May.
At the time, Agribank CEO Sakaria Nghikembua said the relief elements were to be implemented from 1 June, while the roll-out of stimulus loans would be announced as soon as funding had been secured.
According to Agribank, the finance ministry provided a guarantee for the bank to borrow N$200 million for these stimulus loans. In a media statement, Nghikembua advised that clients can start applying for the production loans from Monday, 21 September. Both existing and new clients are eligible.
Stimulating the economy
He added these loans are intended to provide stimulus to the economy by supporting the achievement of optimal production levels. They are also intended to enhance resilience through the creation of additional income streams for farmers.
Nghikembua said stimulus loans could include loans for production inputs or for infrastructure that supports production.
Examples include loans for cropping facilities, livestock restocking and charcoal production, as well as for poultry and farm infrastructure improvement that directly supports production. According to Agribank, clients do not need to prove coronavirus impacts, but must be in good standing in terms of their existing loan accounts. Normal credit assessment processes will apply.
The bank has various existing products to support production, and normal product interest rates will apply.
Clients are advised to apply at their nearest Agribank branch.