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.
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