How to Apply for Agricultural Loans

The National People’s Cooperative Bank (NPCB) can help your business to grow through its easy access and low-payment plan agricultural loans. Loans are issued to small and medium enterprises for agriculture, agro-industry, manufacturing, hotel & attractions, and services. Farmers applying for these loans must be registered with the Rural Agricultural Development Authority (RADA).

Agricultural loans may be used to purchase inventory (livestock, machinery, plants), expand the business, or energy conservation ventures. Financing, however, is not available for purchasing of land or business acquisition.

The loan interest is calculated at 7.875% per annum on the reducing balance with up to seven (7) years for repayment.

To obtain a loan, applicants must provide any of the following as collateral:

  • Registered titles
  • Common-law titles
  • Certificate of Compliance
  • Bill of sale (motor vehicle, equipment)
  • Hypothecation of Savings
  • Insurance Policies (Cash Value applied as security)

In addition to the submission of any of these securities, farmers will be asked to provide 30 % equity (labour, material or cash) to assist in financing the loan requested. NPCB will finance the remaining 70%.

NPCB also requires farmers to provide:

  • Development Plan (Assistance may be obtained from a RADA officer or any other agricultural officers to write your plan)
  • Marketing Contract
  • Valuation Report (land, buildings, etc.)
  • Business Plan (Invoice)