An Enugu-based bank, Umuchinemere Procredit Microfinance Bank Nigeria Ltd., is offering farmers a loan at single digit interest rate of two per cent to enhance agricultural productivity.
The Marketing Manager of the bank, Mrs Chinenye Ochi, said this in an interview with the News Agency of Nigeria (NAN) in Enugu on Tuesday.
Ochi spoke on the sidelines of the ongoing workshop of International Fund for Agricultural Development (IFAD) Technical Assistance Support to Financial Suppliers and Other Value Chain Actors in three states.
She noted that the loans, which was within N200,000, was given without collateral security or a guarantor but should be repaid between six months duration or a farming season.
“The bank is passionate to see rural but active farmers grow by availing them credit to implement their farming programmes and to grow to big farmers.
“The farmers micro-loans between N0 and N200, 000 is given without much protocols or demand, knowing that those borrowing are active in their farming responsibility and have good personal financial/book keeping records,” she said.
Ochi noted that a farmer loaned N200,000 would be expected to pay back N224,000 at the end of the six months or farming season as specified in the term and schedule of the loan.
“We also have discussion with farmers to understand them and structure the loan payment schedule to benefit both the farmer (borrower) and the bank (the lender).
“The bank is also farmers’ friendly and might restructure terms of repayment, if there are genuine reasons or natural occurrence beyond the farmer’s control,” she said.
She also said that the two per cent also was for farmers borrowing beyond N200,000 but those at the category up to N500,000, needed guarantors to undersign for them.
“While for farmers still wanting the two per cent for N500, 000 and above monetary value; the bank needs guarantors and a collateral security for that segment of the agric loan,” Ochi said.