By: Nghiinomenwa Erastus
The Agricultural Bank of Namibia says its non-collateralised loan product tailormade to help communal and small scale farmers with needed capital is still underutilised about eight years after it was launched.
When it was launched in 2017, Agribank said the loans will range from N$5 000 to N$500 000 per individual client at 8% interest per annum, and they are payable in 12 to 54 months, depending on the loan size.
Credit life insurance is part of the product to ensure that the bank is paid in the event that a client dies before paying off the loan to the bank.
Despite introducing innovative new lending products with relaxed collateral requirements, Agribank has observed that its loan portfolio remains largely dominated by asset-backed loans, constituting 78% of the total loans disbursed, primarily due to the structure of the agriculture sector.
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