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AGRICULTURE AND AGRO-PROCESSING FINANCE

This fund has been developed to support SMMEs and Co-operatives in putting arable land to productive use, the acquisition of livestock, the purchase of equipment and for the provision of working capital..

A significant percentage of South Africa's small-scale farmers are based in KwaZulu-Natal, a region known for its diversity of agricultural activities. Agriculturalists here focuses on crops, such as sugar and maize, the horticultural activities of sub-tropical fruits, cashew nuts, potatoes and other vegetables, as well as animal husbandry, inclusive of beef, sheep (mutton and wool), pigs and poultry, together with forestry activities.

In view of this, Ithala has within its ranks agricultural specialists skilled in assessing the agro-processing needs of farming clients - big and small - and providing the requisite business support across the entire field of agricultural pursuits here.

Products offered under this fund include:

  • Land and Building Finance Loan
    • This facility serves the purpose to finance the acquisition of, the improvement, or the refinance of agricultural properties, normally with a 10 year term with a fixed repayment structure or to a maximum of 15 years. This loan is also for the purpose of long term crop establishment e.g. orchards, sugar cane, timber etc.
  • Equipment Finance
    • This is a term Loan serves the purpose of financing the acquisition of agricultural movable assets including center pivots, tractors, loaders, farming equipment, trucks etc. The repayment term is 60 months. The term should however be aligned to the purpose of the loan or the life span of the underlying asset.
  • Working capital or Revolving loan
    • The production credit facility serves the purpose to finance the production costs directly related to the cultivation of the crop and input costs for livestock to be financed, i.e.; seeds, fertilizer, fuel, oil, weed killers, pesticides, storage costs, crop insurance premiums, hedging costs, interest on the loan, fodder, licks, dipping fluid and ear tags. This is revolving facility which enables the farmer to pay his input costs which is then settled in full after harvest.
  • Working Capital or Term Loan
    • The production credit facility serves the purpose to finance the production costs directly related to the cultivation of the crop and input costs for livestock to be financed, i.e.; seeds, fertilizer, fuel, oil, weed killers, pesticides, storage costs, crop insurance premiums, hedging costs, interest on the loan, fodder, licks, dipping fluid and ear tags. This facility can be extended to 3 years to support emerging businesses or businesses at infancy stage. This also covers acquisition of livestock for feed-lotting and speculation, layers, broilers etc.
  • Livestock Finance
    • The production credit facility serves the purpose to finance acquisition of breeding stock like cattle and sheep, dairy cows and sows and boars. The repayment should never exceed productive life of the asset and with a maximum of 7 years for beef and dairy, 5 years for sheep and 3 years for breeding sows.

© Copyright 2017
Ithala is an Authorised Financial Services and Credit Provider
FSP License No. 17139 NCRCP No. 1559 Reg No. 2001/007427/30
Ithala SOC Limited is a wholly-owned subsidiary of Ithala Development Finance Corporation Limited