Agribank extends farmland purchase loan repayment to 30 years for youth
Namibians under 35 years of age willing to purchase farmland through Agribank, now have up to 30 years to repay their farmland loans.
This represents a five-year extension from the usual 25-year period that is now only applicable to clients above 35 years of age.
Agribank said this change is prompted by the Bank’s financial inclusion agenda with a special focus on youth. Under the farmland purchase loan product, loans are advanced to purchase farmland and/ or additional land for agriculture-related activities that are instrumental in adding real enterprise value to the national economy.
“Over the past few years, Agribank has embarked on a youth inclusive journey providing youth-friendly terms and conditions. In 2020, the pro-youth drive led to the introduction of the Women and Youth Loan Scheme (W&Y), targeted at youth (both men and women) of 35 years and below, women of all age categories, and agri-professionals both full-time and part-time farmers,” Agribank spokesperson, Fillemon Nangonya said.
Nangonya said the target group is offered flexible collateral financing options, such as salary backed loans, whereby repayment can be through payroll deduction, contract financing and 100% loan-to-value collateral.
Contract financing requires an off-take agreement between the applicant and a potential buyer/offtake at the time of loan application. Correspondingly, a tripartite agreement between the client, buyer, and Agribank is to be signed once the loan is granted. The recent product review exercise added a provision of a debit order for the W&Y scheme, applicable when the payroll deduction agreement between employers and Agribank is not in place and subject to client’s affordability,” Nangonya explained.