FINCA Banana Production Loan

Financing banana enterprises to boost production and marketing

FINCA’s banana production loan will help farmers to finance their banana enterprises and boost production and marketing.

Primary production input costs (e.g., purchasing plantlets, hiring labour for land preparation, farm tools and equipment required for ploughing, spacing and manure application, etc.)
Recurring Maintenance Costs (e.g., hiring labour required for planting, irrigation, weeding, pruning, mulching, pest and disease control, etc.);
Harvesting, post-harvest handling and (collective) marketing costs (e.g., hiring labour and purchasing of farm tools and equipment, etc.).

At least 2 years of experience in banana production, with at least 1 acre planted
Engagement in commercial banana production and at least one additional source of income (on-farm or off-farm income sources)
Clear CRB for 12 months
The farmer should have undertaken a minimum of three GAP and financial literacy trainings

Minimum loan amount to an individual will be Shs. 1,000,000 and maximum loan amount Shs. 30,000,000
Interest rate of 3.17% per month on declining balance
Loan processing fees of 3.6% payable upfront
Loan application fees of Shs. 10,000 payable upfront
Loan tenure of 3 to 12 months
Hard collateral (e.g., land, kibanja, lease offer, farm equipment, vehicles and soft collateral (e.g., goods in stock, cattle, goats, sheep, future harvest and household items)) required between 70% – 80% of the value of the loan

Loans are advanced to individual members within a group but with mutual co-guarantee of all group members.

Each group member must have at least 2 years of experience in banana production, with at least 1 acre of banana plantation
Each group member must be engaged in commercial banana production and at least one additional source of income (on-farm or off-farm income sources)
Minimum of 5 and maximum of 25 group members
The group must be formally registered and have savings from the previous season
Each eligible group member must have a clear CRB for 12 months

Minimum loan amount to a single group member is Shs. 300,000 and maximum loan amount of Shs. 4,000,000
Interest rate of 5% per month on declining balance for each recipient
Loan processing fees of 1.6% payable upfront
No application fees
Loan tenure of 3 to 12 months
At least 20% cash collateral deposited in savings account and mutual co-guarantee of all group members, signed at the application stage. No other physical collateral is required

FINCA Uganda offers savings accounts for both individual farmers and farmer groups.

Minimum balance Shs. 50,000
Monthly fee of Shs. 1,000
Group benefits by earning 3% interest per annum
Limited withdrawals, i.e., limited to one withdrawal per week. Extra charge of Shs. 5,000 for every additional withdrawal in the same week