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.
The loan can be used for
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.).
Why you should apply for this loan
Instant account opening and fast loan processing
Repayment structure tied to the farmer’s cash flow
No need for additional collateral requirements for group members
Easy access to FINCA mobile financial services
An individual farmer or a group of farmers can apply
You can easily pay back using MTN and Airtel push services
Individual farmers
Qualifications
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
Product
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
Group farmers
Loans are advanced to individual members within a group but with mutual co-guarantee of all group members.
Qualifications
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
Product
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
Savings Account
FINCA Uganda offers savings accounts for both individual farmers and farmer groups.
FINCA Easy for individual farmers
Minimum balance of Shs. 10,000
Monthly fee of Shs. 2,000
Individual benefits by earning 3% interest per annum
Unlimited withdrawals
Group savings account
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