Home Borrowing Land Bank finances agricultural businesses

Land Bank finances agricultural businesses

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01 November 2013, KIROKA, TANZANIA - Habiba Msonga examines her rice paddy After implementing SRI techniques Msonga was able to finish building her home and is planning on becoming one of the first homes with electricity in the area.

It’s vital for business to get funding from institutions that best knows and understands their business. A unique business such as farming and/or agriculture also needs financial help when the economy gets tough. Land Bank is the right institution to approach when needing financial assistance. Businesses could need financing for anything from buying machinery to paying advances.

The commercial farming sector can take advantage of the loan products designed by Land Bank. Loans are tailored according to a business’ needs and vary from short-term, medium-term and long-term mortgages. Agricultural businesses can stay operational and afloat with assistance from Land Bank which has 15 branches in South Africa and 12 satellite branches.

There are no fixed term repayments as interest rates are based on fluctuations in the money and capital markets. There are no hidden costs and all loans from Land Bank carry no transaction costs. Short-term loans have a maximum repayment period of 18 months, medium-term loans can be repaid in three to eight years, while long-term mortgages can take up to 15 years for repayment.

Land Bank also offers special mortgages of up to R500 000 to people and groups who were denied full rights to buy land and have the potential to become successful farmers. Interest rate is set at 10% and remains fixed for 24 months and will be kept as low as the market allows. Special mortgage loans can be repaid in a period of up to 25 years.

For medium-term and long-term loans, borrowers will need to provide security in the form of surety, cession of debtors and cession of insurance policies to name a few. To get more information about Land Bank’s loans and other products, people can visit www.landbank.co.za, e-mail info@landbank.co.za or call 012 686 0500 or toll free number on 0800 00 52 59.

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