Agriculture plays a vital role in a country’s economy and is one of the main employers, providing work opportunities to a significant percentage of people.
In Kenya, the sector employs more than 40 percent of the total population, mostly women and youth, and more than 70 percent of the rural population.
Agriculture accounts for 65 percent of the export earnings, and provides livelihood in the way of employment, income, and food security needs for more than 80 percent of the Kenyan population.
Despite its crucial role, many smallholder farmers suffer from affordability barriers when it comes to acquiring goods and services needed for their activity.
To address this challenge, Co-op Bank has come up with various funding products to help farmers achieve their goals hassle-free.
Whether in dairy, horticulture, coffee, or cereal farming, Co-op Bank funding is designed to enable you to grow your crops from the farm to the market, without worrying about finances.
Below are some of the agriculture loans available at Co-op Bank.
Horticulture & Floriculture Loan
This solution supports fruits, vegetables, and flower value chain players by financing working capital and farm development.
It enables the farmers to purchase land, develop the land by installing infrastructure for irrigation, greenhouses, solar energy, etc.
This specific loan also gives farmers the capacity to buy assets that enhance production such as refrigerators/ cold rooms.
Requirements:
- Duly completed loan application form
- Have an account with a Co-op bank (new or existing)
- 12 month Bank Statement
- Audited books of account for last 3 years and management account where applicable
- Cash flow projection
- Minimum Financing: Sh100,000
Maximum Financing: Dependent on repayment ability
Steps to become a Co-op Bank agent, commission and withdrawal charges
Cotton Loan
This finance service is for the various cotton value chain players such as cotton farmers, ginneries, and textile millers and ranges from farm development finance to working capital and CAPEX.
Requirements:
- 3- year historical production records
- 1- year yield production projection
- Audited Books of accounts for the last 3 years
- Borrowing powers (for Co-operative societies only)
- 12-month Bank Statement
- Cash-flow projections
- Resolution to borrow for C0-operative societies & companies.
- Minimum Financing: Ksh 50,000
Maximum Financing: Dependent on society’s repayment ability.
Dairy Loan
This product is targeted to dairy farmers, dairy companies and dairy groups all over the country.
The loans offered under this program are:
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- Dairy Farm Input Finance: this enables farmers to buy animal feed, fertilizer for pasture, livestock drugs and Al services to boost milk production
- Supply Chain Finance: To facilitate timely payment for milk delivered by farmers and other creditors on time.
- Dairy Processing Plant Financing: To facilitate establishment and refurbishment of dairy processing plants
Requirements:
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- Have an account with Co-op Bank (new or existing) Milk supply contract with a dairy processor
- 3 years’ experience in dairy farming/processing
- Milk proceeds payment should be through your Co-op bank account
The Minimum financing is Sh5,000 while maximum financing is dependent on repayment ability.
Cereal Farmers Loan
This finance service is for farmers in cereals production, e.g., rice, maize, sorghum, wheat, barley, and all pulses.
The solution facilitates farmers in the purchase of farm inputs and equipment, which includes tractors, combine harvesters, threshers, driers, storage equipment, and store constructions.
Requirements:
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- Have an account with Co-opBank (new or existing)
- Bank statement for the last 1 year
- Audited books of account for last 3 years and management account where applicable
- Cash flow projection
The minimum financing is Sh50,000 while maximum financing is dependent on repayment ability.
To access these cheap loans, Visit any Co-op Bank branch countrywide.
