Post-Harvest
Our post-harvest loan is intended to bridge the gap between the harvest and sale periods. The loan helps farmers with liquidity before they get sales profits from the off taker.
Our post-harvest loans will help farmers cover the costs of storing, processing, and transporting their produced crops, allowing them to avoid selling their produce at a low price right after harvesting due to a lack of storage or processing capacity. These loans allow farmers to preserve their harvests until market circumstances improve, resulting in more revenues and lower losses.
Account Overview
Our post-harvest loan is intended to bridge the gap between the harvest and sale periods. The loan helps farmers with liquidity before they get sales profits from the off taker.
Our post-harvest loans will help farmers cover the costs of storing, processing, and transporting their produced crops, allowing them to avoid selling their produce at a low price right after harvesting due to a lack of storage or processing capacity. These loans allow farmers to preserve their harvests until market circumstances improve, resulting in more revenues and lower losses.
Post-Harvest Product Features
The key features of agriculture loans are as follows:
Features | Post-Harvest Loan |
|---|---|
Available channels (requisition/ repayment, monitoring) | Branch, USSD, Mobile, API, Partner Applications |
Interest rates | CBR+ Margin- (18%) |
Processing Fee | 2% on the loan amount |
Insurance | Crop insurance will be required |
Loan Tenor | Maximum of 6 months. |
Repayment | Method of loan repayment is either monthly installment or balloon payments of select farm produce. |
Interest Rates | Prevailing market rates |
Quantum of Loan | Financing up to 90% of the invoice receipt amount The value of the crop to be determined by a bank appointed agronomist. |
Loan Limits | Each off taker /SACCO will be credit assessed and a limit granted to facilitate farmers loan. |
Disbursement of loans | Farmers will be required to open accounts with DTB where loans will be disbursed directly. |
Other benefits | Training and advisory services on production and marketing Access to training by the Ministry of Agriculture. |
Approval Authority | As per Banks existing approval matrix |
Eligibility Farmer Product Eligibility
The product will be offered to farmers who have supplied/delivered produce to Off-takers/SACCOs/Umbrella bodies/Processors with whom the bank has an MoU/Agreement and assignment of proceeds to DTB.
The farmer should provide us with a valid delivery notes and invoice showing the quantity supplied, the expected date of payment and amount to be paid to the farmer.
Both Off-taker and farmer to be DTB customers
Farmer appraisal criteria:
The farmer Should not be having any existing loan charged to the crop/harvest.
Both off taker and farmer Should have a DTB Account.
Individual/ group of progressive farmers/ Producer companies/ Saccos engaged in agriculture.
Provide an invoice from the off taker on the produce already delivered for sale.
They should have some tied-up arrangement for marketing of the produce.
Assignment of the receivables is required.
Collateral in agreeable form (accounts receivable, inventory, warehouse receipts, equipment and/or land), and sufficient value to support loan amount.
Off taker Eligibility criteria.
The off taker/SACCO shall be a DTB customer.
Shall be a processor/aggregator or SACCO of good standing.
To have a significant number of customers in their ecosystem.
Off taker appraisal Criteria
He should have at least 3 years audited accounts.
Have an account maintained with DTB.
Good repayment record
