Pre-Harvest
Pre-harvest loans are vital for farmers because they allow them to invest in their crops ahead of time, boosting the chances of a successful harvest. Farmers who have access to capital for goods and labor can optimize their agricultural techniques, increase yields, and increase their income.
DTB's Pre-Harvest loan will give farmers with direct pre-harvest financing to cover a variety of pre-harvest expenses, such as farm preparation, fertilizer application, and harvesting labor, among other things. DTB will collaborate with aggregators, Saccos, and cooperatives to act as middlemen between farmers and banks, assisting in risk assessment, verification of farming techniques, and loan disbursement and repayment.
Account Overview
Pre-harvest loans are vital for farmers because they allow them to invest in their crops ahead of time, boosting the chances of a successful harvest. Farmers who have access to capital for goods and labor can optimize their agricultural techniques, increase yields, and increase their income.
DTB's Pre-Harvest loan will give farmers with direct pre-harvest financing to cover a variety of pre-harvest expenses, such as farm preparation, fertilizer application, and harvesting labor, among other things. DTB will collaborate with aggregators, Saccos, and cooperatives to act as middlemen between farmers and banks, assisting in risk assessment, verification of farming techniques, and loan disbursement and repayment.
Pre-Harvest Product Features
The key features and benefits of preharvest loan are as follows:
Features | Pre-Harvest Loan |
|---|---|
Available channels (requisition/ repayment, monitoring) | Branch USSD Mobile API, Partner Applications |
Uses | Short-term finance to enable farmers to complete crop production, harvest and prepare produce for market/sale or storage/warehousing (Includes preservation of produce, storage, transportation to market etc.) |
Description | Short-term finance to enable farmers prepare produce for harvest/storage/market/sell the crops. |
Processing Fee | 2% on the loan amount |
Insurance | Crop insurance will be required |
Loan Tenor | 1 Year – Regular Crops |
Interest rate | Prevailing market rates |
Repayment | Maximum of 1 year or crop period/cycle, whichever is shorter for farm inputs financing. |
Disbursement Of Loans | Farmers will be required to open DTB accounts where loans will be disbursed directly. |
Documents Required | KYC documents Duly filled in (e)/ application form Identity proof- National ID card/KRA pin card/Valid Passport Address proof: Bank statement and farmer record. Any other document requested for by the bank/ DTB |
Other benefits | Training and advisory services on production and marketing, Access to training by the Ministry of Agriculture |
Account Benefits
Discover the advantages of banking with Pre-Harvest:
The loan will be granted to farmers to cover for short-term finance and enable them complete crop production, harvest and prepare produce for market (including transportation labor, etc.)
The loans will be given to farmers with off taker arrangement or farmers who are members of a SACCO or a Cooperative.
Eligibility
Eligible farmers of this Loan are – Farmers, Farming cooperatives, Agri-food and food processing, Input suppliers (seed, fertilizer, pesticides)
Farmer Eligibility criteria:
The following are eligibility criteria for the farmer:
Members of SACCOs or Umbrella bodies and with clean records
Farmer to agree to checks by the bank assigned extension officer.
All entities should open a DTB bank account.
All entities should have Good Credit rating.
Bank statement and or farm produce records showing farm output and the revenues generated from farm sales.
Assignment of sale proceeds by farmers from the Off takers
They should have some tied-up arrangement with Off-takers for sale of the produce.
Off taker/ Aggregator Eligibility Criteria.
He should have at least 3 years audited accounts.
Good repayment record
Either a processor/ SACCO/cooperatives or large trader.
DTB account holder
Initially limits will be granted to SACCO’s and aggregators who will utilize the same to finance farmers, whom they have offtake agreements with. These loans to farmers will be approved individually by the bank upon production of the said agreement, proof of good track record of the farmer, and assignment of receivables to the bank.
