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Enabling positive futures
With Nafaka Loan you can get
finance for your farming inputs.
What is Nafaka Loan?
A seasonal loan that enables farmers to purchase farm inputs and finance crop production.
Features
- Financing for seeds, fertilizer, land preparation, crop management, and harvesting
- Suitable for individuals’ farmers, groups, CBOs and self-help groups
- Flexible repayment aligned to the crop cycle, with bullet payments at harvest
- Unsecured and secured options available, including crop insurance
- Fast approval within 48 hours and phased disbursement based on farming needs
How does it work?
- Open an account with Faulu
- Farmers who have been involved in growing the same crop. This to be proved by funds in the bank for the previous crop’s proceeds
- Request to be supported by quotations and appropriate budgets
- Ability to repay-we shall lend a maximum of 70% of the previous season’s proceed from the crop harvested
- Provide appropriate conventional collateral and clean credit history evidenced by a credit reference bureau report
- Duly completed credit facility application form
- PIN certificate and National I.D. (original and copy)
- Certificate of registration (in case of registered enterprise/sole proprietorship)
- Bank and Mpesa statements as evidence of earnings
Want to know more about Nafaka Loan?
If you want to know more, we've put together some frequently asked questions for you.
- Applicable conventional collateral i.e. Logbook for motor vehicles, tractors, trucks or title deeds. Bank margins on the collateral to apply
- Logbooks on Tuk Tuks, motorcycles, PSVs will not be accepted
Compulsory Crop Insurance cover through Faulu Bancassurance capitalized as part of principle if the customer cannot afford it.
- Interest spread and paid in equal installment within the loan term
- Bullet payment to clear the loan upon receipt of the earnings or payment from the farmer upon maturity of the loan whichever comes earlier
- Loan processing 3% of the principal
- Credit Life Insurance at 0.6% per annum
Compulsory Crop Insurance cover through Faulu Bancassurance capitalized as part of principle if the customer cannot afford it
Let's talk
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