Agribank extends farmland purchase loan repayment to 30 years for young people

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Namibians under the age of 35 wishing to buy farmland through Agribank now have up to 30 years to repay their land loans.

This represents a five-year extension from the usual 25-year period which now only applies to customers over the age of 35.

Agribank said this change is driven by the Bank’s financial inclusion agenda with a particular focus on young people. Under the Farmland Purchase Loan product, loans are provided to purchase farmland and/or additional land for farming-related activities that help add real business value to the business. national economy.

“Over the past few years, Agribank has embarked on an inclusive journey for young people by offering youth-friendly terms and conditions. In 2020, the campaign for young people led to the establishment of the Women and Youth Loan Scheme (W&Y), aimed at young people (both men and women) aged 35 and under, women of all age groups and full-time agro-professionals. -time and part-time farmers,” Agribank spokesman Fillemon Nangonya said.

Nangonya said the target group is being offered flexible collateral funding options, such as salary-backed loans, where repayment can be through payroll deduction, contract funding and 100% loan-to-value collateral.

Contract financing requires a drawdown agreement between the applicant and a potential buyer/drawdown at the time of loan application. Accordingly, a tripartite agreement between the client, the buyer and Agribank must be signed once the loan has been granted. The recent product review exercise added a debit order provision for the W&Y program, applicable where the payroll deduction agreement between employers and Agribank is not in place and subject to the affordability of the customer,” Nangonya explained.


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