The following are the established agribusiness loan products as per the product profiles;
Dairy Enterprise loan
This is financing designed to cater for both short-term and long-term needs in the dairy value chain. Loan available to dairy farmers cooperative societies, Breeders etc. This loan can also be disbursed against raw milk, value added products and for other players in the sector (breeders). Loan designed for new and existing Vision Afrika Sacco clients already in dairy value chains. For starters, ability to pay and availability of other sources of income to be demonstrated, Proof of existing market –signed supply contracts, deliveries, evidence of payments is a requirement.
Input and working capital loan
This is financing designed to cater for both short-term and long-term needs in the dairy value chain. Loan available to dairy farmers cooperative societies, Breeders etc. This loan can also be disbursed against raw milk, value added products and for other players in the sector (breeders). Loan designed for new and existing Vision Afrika Sacco clients already in dairy value chains. For starters, ability to pay and availability of other sources of income to be demonstrated, Proof of existing market –signed supply contracts, deliveries, evidence of payments is a requirement.
Contract farming loan
A product designed to assist clients involved at various levels meet their cash flow problems. Financing arrangements here include warehouse receipting, invoice discounting. Benefits include easy source of funds as the client await sale of commodities. Clients are able to meet their orders on time. Short loan repayment period, Lending pegged to costs of goods supplied and not the sale value of goods supplied. Need specific loan where loan amount is not pegged on cycle but on the date of invoice/LPO. Loan based on the business ability to pay. Proof of existing market –signed supply contracts, deliveries, evidence of payments is a requirement. Product tailored for dairy societies to ensure prompt payments for milk delivered to processors. Supports dairy units to acquire working capital for feeds supplies to member’s salary payments and any emergencies.
Horticulture Loan
Loan for horticulture farmers and other value chain actors. For people in high yield areas to cater for Land Preparation, Purchase of inputs, Lease of Land and purchase farm inputs. Loan helps develop and boost sustainable horticultural crop farming for clients with horticulture farming experience. Also available for large scale farmers, starters and developing farmers in a registered group with demonstrated link to the value chain and ready market. Crops considered include short term vegetables such as Potatoes, garden peas, French beans, cabbages, Tomatoes and onions.
General Requirements
• Must be a member of Vision Afrika Sacco
• Three (3) to Six (6) months’ business/accounts turn-over records depending on the loan amount
• Min. loan amount Kes 5,000
• Max. Loan amount kes 5,000,000
• Amounts to be fully secured and or covered by member and guarantor savings
• Crop and animal Insurance package is being used as security charged as part of the loan.
• Minimum 1 month and Maximum 48 months
• Interest repayment mode to include weekly, Monthly or quarterly to maturity of the agribusiness
• Principal repayment mode to include weekly, Monthly or/and bullet payment according to agribusiness seasonality.
• Loan interest charge at 1.5% per month
• Loan application and processing fees 2% Loan amount
• Credit Insurance fee 2% of the loan amount
