Agribank launches No Collateral Loan

29 Apr 2017 17:40pm
OSHAKATI, 29 APR (NAMPA) – The Agribank of Namibia launched a new product on Friday in Oshakati called “No Collateral Loan”.
The product is the bank’s response to farmers’ needs, especially those in communal areas who do not have access to conventional collateral.
“This intervention is a step towards the bank’s strategic objectives of catalysing transformation of the agricultural sector in Namibia,” said Agribank Chief Executive Officer (CEO) Sakaria Nghikembua at the launch.
Nghikembua said the bank is committed and ready to play its role in the country’s economy by coming up with a product targeted at salaried communal farmers.
These are farmers, who are Namibian citizens and genuinely do not have fixed property in a proclaimed urban environment.
Loan sizes will be from N.dollars 5 000 to N.dollars 500 000 per loan client at 8 per cent interest per annum, and is payable in 12 to 54 months, depending on the loan type.
Credit life insurance is part of the product to ensure that the bank gets paid if a client dies while still owing the bank.
Also speaking at the launch, Vice Chairperson of Agribank Board of Directors Michael Iyambo explained that the bank continues to provide financing for agricultural purposes against mortgage collateral and/or fixed term investment.
He said the financial services institution decided to support the funding of agro-processing industries in the country to add value to basic agricultural produce, create employment and expand production in support of economic growth.
Oshana, Oshikoto and Omusati governors, Clemens Kashuupulwa, Henock Kankoshi and Erginus Endjala respectivly, also attended the launch.
(NAMPA)
NN/EKM/LI