Namibia’s AgriBank has introduced a new loan facility to prevent farmers defaulting on existing loans. The so-called consolidated loan scheme offers clients a more lenient way of paying instalments. Many people have various loans with AgriBank, as well as with its commercial counterparts.
The new loan facility will replace old loans with the bank and other commercial banks, and will allow payment in one annual instalment corresponding to marketing of produce. Farmers also have the option of extending repayment periods to between 10 and 25 years, reducing the annual debt burden. – Servaas van den Bosh