National Bank of Malawi on Thursday introduced what it is calling the 'Farm Infrastructure and Implement loan facility'.

The Bank's business development manager Samuel Ngwira told journalists in Lilongwe, the loan is aimed at improving access to agricultural value-addition facilities.

"Agriculture is the mainstay of the country's economy and a source of employment. We would like to fuel the sector to achieve greater heights," said Ngwira.

The loan according to Ngwira, will be open to National Bank customers and all farmers who might not have an account with Malawi's biggest bank by assets.

He further through the facility, eligible recipients will be provided with funds to procure the implement.

The loan will have a repayment period of six years. It will be repaid annually, bi annually quarterly or monthly of the agreed repayment period.

Commercial farmers may obtain within the ranges of MK5 million to MK200million. While small holder farmers and cooperatives may get MK2 million to MK100 million.

The targeted implements and infrastructure include, irrigation equipment, solar equipment and land preparation equipment among others.

The bank further said it came up with the loan after noticing that farmers lack funding for investments in agriculture equipment.

Apart from the facility National Bank of Malawi also offers seasonal overdraft loans targeted at the agriculture sector.

 

Source: https://kulinji.com/article/news/business/2020/nbm-introduces-infrastructure-loans-farmers