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

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