The target clients under this product are mainly smallholder farmers organised under:
- Co-operative societies
- Community Based Organizations (CBOs)
- Agricultural marketing federations
- Farmers-owned limited companies
- Self-Help groups
- Any other legally identifiable associations
- Loan amount ranges from a minimum loan of KSh300,000 to a maximum of KSh30,000,000.
- Repayment period shall match the crop production cycle for production loans and shall not exceed 12 months. For capital investment, repayment period shall be up to a maximum period of 60 months (5 years) depending on the nature of project to be financed, e.g., construction of irrigation infrastructure, processing plants, marketing sheds, pack houses, etc.
- They must be in a duly registered entity
- The entity must have been in active operations for a minimum of 1 year
- The entity must have a clearly defined constitution or by-laws (certified by the relevant authority)
- The client should have borrowing powers/limits set by a regulating body, e.g., Commissioner for Co-operatives in the case of co-operative societies.
- For farmers limited companies, there must be a resolution to borrow made by the directors and borrowing powers provided in the articles of association. The borrowing must however be approved by the farmers (shareholders) in an AGM or Extra-ordinary General Meeting.
- They must have a registered trust deed (for non-legal entities such as CBOs, SHGs, etc).
- They should have clear management structure including a trained office clerk/manager
- Must be able and ready to provide at least one year's financial statements
- Should have valid farming contract for production financing
- The entity must have undergone training by the Bank on group dynamics, financial literacy and loan management and copies of the proceedings (or graduation certificate) of such training be provided.
- Must have a well-defined weekly or biweekly meetings schedule for members of the association.
- Must have well organized sub-units of 15 to 30 members with each having a chairman, secretary and discipline master.
- Must be ready to contribute a minimum of 30% of the project cost to be financed.
- Each member will be required to consent to the loan application and be ready to execute personal guarantee and pledge of chattels for the facility.