Posted on September, 23, 2020 at 07:48 am
CRDB Bank has slashed agricultural loan interest rate and removed collateral for farming machines.
The lender said on Tuesday that the rate dropped from the current 20 per cent to 18 per cent in a move aiming to empower farmers to increase capital base and expand their businesses.
The bank also abolished collateral for agri-machines and equipment that will act as loan assurance and one can borrow up to 3bn/-.
The Minister for Agriculture, Japhet Hasunga said the move was commendable since most farmers, especially smallholders, are poorly equipped since they cannot afford the running costs of modern agriculture.
“This requires the participation of financial institutions and other private sector partners to partner with the government in capitalizing these farmers and increasing investment in the agricultural sector,” Mr Hasunga said.
The minister was gracing the launching of agri-equipment loan that is jointly implemented by CRDB—the lender, ETC Agro, LoanAgro and Agricom—the supplier of farm machines—in Dar es Salaam.
The initiative is poised to benefit farmers by enabling them to get affordable loans for agricultural equipment, including tractors, power tillers, harvesting machines and others.
“I am very pleased with this partnership to financially empower farmers to modernize farming practices,” Mr Hasunga said.
CRDB Managing Director, Abdulmajid Nsekela said apart from lowering loan interest rate, the bank also slashed down payment amount from 35 per cent to 25 per cent.
“This demonstrates our commitment to support the government’s efforts to bring development, considering that the agricultural sector provides employment to about 75 per cent of the population and 28 per cent to the GDP,” said Mr Nsekela.
He also said a borrower can take up to 3.0bn/-at a go in a period of between three and five years.
Agricom Director, Ms Angelina Ngalula said they see their dream to contribute to the development of the agricultural sector in the country about to be fulfilled through the partnership with CRDB.
The company, which produces several of equipment locally, expects in the next year to sell 500 power tillers that require 500 trailers, which will be produced locally and contribute to providing employment to Tanzanian youth.
Source: Daily News