Enugu-based micro-finance bank offers poor farmers 2% interest loan

An Enugu-based bank, Umuchinemere Procredit Micro-Finance Bank, says it is offering active poor farmers a loan of single digital interest rate of two per cent to enhance agricultural productivity.

Marketing Manager of the bank, Mrs Chinenye Ochi, said in Enugu on Tuesday on the sidelines of the ongoing workshop of International Fund for Agricultural Development (IFAD) Technical Assistance Support to Financial Suppliers and Other Value Chain Actors in three states.

She noted that the loans, which is within N200,000, is given without collateral security or a guarantor but should be repaid between six months duration or a farming season.

“The bank is passionate to see rural but active farmers grow by availing them credit to implement their farming programmes and to grow to big farmers.

“The farmers micro-loans between N0 and N200, 000 is given without much protocols or demand, knowing that those borrowing are active in their farming responsibility and have good personal financial/book keeping records,” she said.

Ochi noted that a farmer loaned N200,000 would be expected to pay back N224,000 at the end of the six months or farming season as specified in the term and schedule of the loan.

“We also have discussion with farmers to understand them and structure the loan payment schedule to benefit both the farmer (borrower) and the bank (the lender).

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