What are the terms and conditions under the Agriculture Credit Facility?

What are the terms and conditions under the Agriculture Credit Facility?

i. Loan Amount

The maximum loan amount to a single borrower is UGX 2.1 billion but this amount can be increased on a case-by-case basis for eligible projects that add significant value to the agricultural sector and the economy as a whole.

ii. Loan Term

The minimum loan period is 6 months and the maximum loan period is 8 years with a maximum grace period of 3 years as may be determined by the Participating Financial Institutions. The minimum loan period for Grain trade facilities is 6 months and the maximum is 2 years and without a grace period.

iii. Interest Rate

The interest rate charged by the Participating Financial Institution to the final borrower is a maximum of 12 % per annum. However, the interest rate for the Grain facility is up to a maximum of 15% per annum.

iv. Facility Fees

Facility fees charged to the client under the Agricultural Credit Facility should not exceed 0.5% of the total loan amount. Other charges will be borne by the borrower.

v. Repeat Borrowing 

There is room for repeat borrowing under the agriculture credit facility, provided the borrower has sufficient business cashflows to service the new loan repayments.