Various financial institutions in South Africa offer agricultural loans to farmers. These loans give them the financial backing they need to improve the production of food in the country. You could imagine the situation in a country that doesn’t boast many farmers. What agric loans mean, how to apply for agricultural loans in South Africa, requirements, things you can do with them, etc. are all-inclusive in this article. Land and Agricultural Development Bank of South Africa for prospective farmers with limited resources. Here is how.
About The Land and Agricultural Development Bank of South Africa (Land Bank)
Established in 1912, the Land and Agricultural Development Bank of South Africa (Land Bank) is a specialist agricultural bank. A key objective of the Bank is to provide specially designed financial services to commercial and emerging farmers in South Africa. A key objective of the Bank is to provide specially designed financial services to commercial and emerging farmers in South Africa.
What They Do
The sole purpose of Land Bank is to serve South African commercial and emerging agriculture by providing farmers all over the country with specially designed financial services. Farmers can use these services to finance land, equipment, improve assets, and more. Currently, the bank serves all farmers equally as a true South African development finance institution.
Land Bank is committed to sound environmental policies. Both internally and with their clients, as a responsible lender and to preserving the institution’s longevity. They have a goal of looking after their clients with every loan we provide and every agricultural venture they start. Furthermore, they must ensure that their farming techniques do not hurt the environment, but rather create value and are long-term viable.
What are the qualifying criteria to access finance from Land Bank?
The general requirements for clients to access funding from Land Bank include:
- Be a South African citizen;
- Have a clean credit record;
- A clear business plan;
- Have enough security equivalent to the amount being borrowed; and
- Be able to afford the repayments on a loan
Because certain clients, particularly new generation farmers, may lack the appropriate security or credit profile to fulfill the financial eligibility requirements. As a result, we recommend all applicants to contact their local Land Bank location for a complete list of criteria tailored to their specific needs.
Do I need collateral or security to access finance?
Yes, in order to get money from Land Bank, you’ll need to put up some kind of security or collateral.
They do recognize, however, that some potential clients may not have collateral or security. It is recommended that all candidates contact their local Land Bank location for a complete list of requirements specific to their needs. Check out a comprehensive list of loans without collateral.
Land Bank repayment terms
​Depending on the term of the loan, there are different repayment periods:
- Short-term loans – 1 to 3 years
- Medium-term loans: 3 to 12 years
- Long-term loans: 12 to 25 years
Land and Agricultural Development Bank of South Africa Contact Details
Postal | PO Box 375, Tshwane, 0001 |
Physical | Eco Glades 2, Block D, 420 Witch-Hazel Avenue, Eco Park, Centurion |
Tel | 012 686 0500 |
Fax | 012 686 0718 |
Web | Landbank.co.zaC Click Here for more information on the application process |
Conclusion
Land Bank is committed to sound environmental practices both internally and with its clients as a responsible lender and to maintaining the institution’s long-term viability. The bank assures that every loan disbursed and every farming venture started follows agricultural techniques. This is important so as not to harm the environment, but to create value and be long-term sustainable.