Season Financing

This is a monetary loan that is repaid in regular payments over a set period of time. Seasonal loans usually last between one and three years. A term loan usually involves an unfixed interest rate that will add additional balance to be repaid.

Seasonal loans are generally provided as working capital for acquiring income producing assets (machinery, equipment, and inventory) that generate the cash ows for repayment of the loan.

PURPOSE OF THE LOAN

To finance Pre & Post harvest activities (i.e. farm preparation, purchase of inputs, maintenance & harvesting), Purchase of Animals (i.e. livestock, poultry, fish fingerlings), purchase of animal feeds.

TARGET MARKET

SHF’s, Organisations, SME’s, livestock keepers, Aggregators, Fishing organization.

LOAN AMOUNT

Loan amount for term loan should not exceed 75% of the project costs.

Note: All term loans to be based on the viability of the project finance business proposal from the borrowers

INTEREST RATE

Smallholder farmers, Livestock keepers, Fisheries - 8% - 12%. Medium and large scale farmers - 13% - 15%

TIME DURATION

1-3 years