Wema Bank Agricultural Production Loans for SME
Wema bank Agricultural finance is the bank’s financial facilities granted to the farmers to aid their inputs like seeds, fertilizers, pesticides, etc. The production loans also include working capital finance to meet expenses of various nature attributable to farming. The Wema bank Agricultural production loans is an overdraft facility which could be used farmers to meet the cost of farming, cultivation and working capital activities for agribusiness and associated activities.
The Wema bank Agricultural production could be used for buying cattle, purchase of equipment for farming and irrigation and other agricultural requirements. Agriculture loans are generally low-interest loans that farmers can avail to run their farming business more efficiently. The Agriculture financing loans shall not include loans to traders and intermediaries engaged in the trading/processing of agriculture commodities. Such lending would be covered under Prudential Guidelines for Corporate/ Commercial Banking or SME Financing.
Wema Bank Agricultural Production Loans Features
– Agricultural Production Loans for inputs like seeds, fertilizers, pesticides, etc. Production Loans also include working capital finance to meet expenses of various nature attributable to farming.
– Farm Development Finance for improvement of agricultural land, orchards, nurseries, agro-allied industries, bakeries, animal husbandry, horticulture, etc.) and construction of storage facilities, etc. for storage of seeds, raw agriculture/farm produce.
– Agricultural Finance Lease for the purchase of agricultural machinery and equipment like tractors, threshers, etc.
– Non-fund based facility (e.g., Letters of Credit) for procurement or importation of agricultural supplies etc. by corporate and non-corporate farmers. Read: Budget Planner and Financial Pattern for Every Age Group
Required Documents: Confirmation of cheque/draft from authorized signatories of the issuing institution
– Number of returned cheques in the last 6 months
The Wema bank Agricultural production loans can be extended to entities (including corporate farms, partnerships, and individuals) engaged in farming activity, as well as processing, packaging, and marketing of mainly their own agricultural produce, provided 75% of the agriculture produce being processed, packaged and marketed is produced by the above-mentioned entities themselves.
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