Namibia: Agribank Launches Collateral-Free Loan

May 03, 2017 | New Era; All Africa

Namibian Agribank has launched a collateral-free loan and other financial products to broaden finance access to communal farmers.

Oshakati - Agribank has launched a collateral-free loan to enable working communal farmers with no conventional collateral to access agricultural loans. The product targets salaried communal farmers who have the ability to repay their loans but do not have property in a proclaimed urban environment. Speaking at the launch at Oshakati last Friday, Chief Executive Officer at Agribank Sakaria Nghikembua said the "no collateral loan" is in line with the bank's strategic plan geared towards inclusiveness for all farmers including those in communal areas. The inclusiveness of all communal farmers will, amongst other factors, increase food production and contribute to household-level food security. Speaking at the same event, the Vice-Chairperson of Agribank Board of Directors, Michael Iyambo, said the bank will sign agreements with employers to have repayments of the loan deducted from the payroll monthly. "As a bank we decided to address the gap whilst reasonably mitigating our lending risks; Instead of paying via banking debit orders, we will deduct via payroll to enhance our collections success rate," said Iyambo. Read more on All Africa. Source: All Africa