What is Nafaka Loan?
What's in it for you?
- The purpose of the loan is to purchase farming inputs including seed, fertilizer, and farm preparation, crop management and harvest
- Refinancing is available subject to appraisal immediately upon full clearance of the existing loan
- Application at branches and marketing offices and the application is approved within 48 hours (process flow to be done)
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
- 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.
Compulsory Crop Insurance cover through Faulu Bancassurance capitalized as part of principle if the customer cannot afford it