Agriculture Loans

Purpose

Agricultural Loans are specifically meant for farmers (Dehkan farmers entities) for growing crops, livestock rearing, processing, storing or marketing agricultural produce. Female borrowers engaged in agricultural activities are highly encouraged.

The loan amount can be used for acquisition of crops, seeds, fixed assets and working capital needs for mature farming businesses.

It should be noted that trading of agricultural produce alone is not considered an agricultural activity.

Quick Facts

  Minimum loan size

  • Crop growing, livestock rearing: TJS 800

  • Fixed asset, expansion: TJS 8,000

  Maximum loan size

  • Crop growing, livestock rearing: TJS 900,000

  • Fixed asset, expansion: TJS 900,000

  Minimum loan term

  • Crop growing, livestock rearing: 3 months

  • Fixed asset, expansion: 6 months

  Maximum loan term

  • Crop growing, livestock rearing: 18 months

  • Fixed asset, expansion: 36 months

  Guarantor

Guarantor is required for loans above TJS 9k. The full financial analysis of the guarantor is required

  Collateral

Collateral is required for loans above TJS 9k

For any agricultural loans above TJS180k, property collateral should be located in urban or semi-urban areas, unless proper reliable guarantee facility is not provided to the Bank.

  Minimum customer contribution

  • Crop growing, livestock rearing: not required

  • Fixed asset, expansion: 30% of the fixed asset price or expansion budget

  Grace period

  (only principal amount)

Up to 9 months depending on the intended use of the loan

  Currency

TJS

  Interest rates in TJS

  29% - 35% Interest rates are stated annually                   

  Early closure

      Allowed with the condition to formally report but no penalties as per the NBT requirements.

How to Apply

Interested clients should consult with the nearest branch or banking service centre.

Clients should bring with them the following documents:

• Copy of a valid passport;
• Tax Identification Number (TIN);
• Two recent passport size color photos;
• Loan utilization/investment plan;
• Copy of a valid passport of the guarantor (if applicable);
• Tax Identification of Guarantor (if applicable);
• Certificate of state registration or other appropriate document.

Benefits

• Long loan maturity term and grace period supports farmers with handling the seasonality of agricultural activities by providing sufficient time to procure agricultural machinery/ equipment and engage in crop rotation 
• Attractive interest rates with the potential for further discount if the customer opens an FMFB deposit account and services their loan through it
• Transparent and collaborative loan application process that is rooted in integrity and customer protection principles