Our Services
Agricultural Finance
Agricultural finance function is provided from a portfolio established at the Bank by the Government by virtue of Law No. 48/1988. The purpose of the portfolio is to finance agricultural production projects, as well as support the development and expansion of existing agricultural projects.All agricultural loans are subject to an annual management fee at 2.5% per year on the drawn amount of the loan. These loans are provided for farming and crop-growing projects, greenhouses, livestock breeding and fish farming and other agricultural activities.
Funding areas
The Agriculture Finance Department of the Bank finances new projects expands existing projects in order to increase production or to add new products in the same location. Funding is provided for agricultural production in general, as well as the following specific areas:
- Local production of all types of poultry including broilers and eggs production.
- Local production and processing of dairy products.
- Local construction of greenhouses.
- Cultivation of cereals, crops, and fruit trees.
- Breeding livestock and fish farming.
- Production of feeds and fertilizers.
- Preservation, storage, and transport services for agricultural projects.
Types of funding
Types of funding provided for an agri-business:
- Short-term loans to be settled within one year.
- Long-term loans to be settled within a maximum of 10 years.
- Funding is granted for agricultural production such as purchase of livestock and poultry, equipment and machinery, construction or restoration of greenhouses irrigation channels, buildings, wells and other related projects.
- We finance agricultural projects covering over 15,000 square meters of land. We provide short-term loans that may amount up to 100% of capital requirements. These loans are settled from profits from the sale of crops and from government subsidies.
For short-term loans settled within one year, agriculture loans up to 100% of the cost of the project are provided between a minimum of KD 1,000 and a maximum of KD 20,000.
For long-term loans settled within 10 years, agriculture loans up to 70% of the project cost are provided between a minimum amount of KD 20,000 and a maximum amount determined by the Agriculture department.
Application for agricultural finance
To submit a request for loan, the applicant must submit a license from the Public Authority of Agriculture Affairs & Fish Resource, the original lease of agricultural land from the State Property Department at the Ministry of Finance, as well as other documents related to the project.
Loan repayments & collateral
Loan repayments may be made through monthly, quarterly, or biannual installments. A grace period of up to two years is offered for expansion projects, three years for new projects, and five years for fruit or palm tree cultivation projects.The following types of collateral are accepted: first mortgage on the project’s fixed assets, mortgage of commercial space, operating license, goodwill, or any other acceptable collateral.
