Namibians under the age of 35 wishing to buy farmland through Agribank now have up to 30 years to repay their farm 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 a youth-inclusive journey offering youth-friendly terms and conditions. (W&Y), aimed at young people (men and women) 35 and under, women of all age categories and full-time and part-time agro-professionals,” the spokesperson said. Agribank, Fillemon Nangonya.
Nangonya said the target group is offered flexible collateral financing options, such as salary-backed loans, in which repayment can be through payroll deduction, contract financing 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.