The JN Small Business Loans Ltd. (JNSBL), took the occasion of the annual Denbigh Agricultural Show this past weekend to announce a new loan product, branded Famer’s Choice, which will allow farmers to access micro loans of up to J$150,000 to prepare land or purchase equipment and supplies.
JNSBL general manager, Frank Whylie, said Farmer’s Choice is intended to meet the financial needs of micro farmers across the island, who already have difficulties accessing affordable credit, and who often do not have the collateral required to secure the loans. He added that the JNSBL agricultural loan will complement existing products that have been established by government and the private sector to increase farmers’ access to financing.
The new loan facility has been specially designed to meet the needs of small farmers, whose production make a significant contribution to national production levels. “To stimulate agricultural growth we have to facilitate the ‘base of the economic pyramid’ so that farmers can achieve the right formula to sustain their production cycles. We expect that this pool of accessible credit will increase and help to sustain the growth now being experienced by the sector,” said Whylie.
To qualify for the loan, farmers are required to prepare a plan in consultation with the Rural Agricultural Development Authority (RADA). The plans for submission to JNSBL must include start up costs and projected revenues. Farmers who qualify to borrow from JNSBL, then have a maximum of up to 25 weeks to repay the loan. For loan security, JNSBL will accept a promissory note, and assignment of the proceeds of sale from buyers participating in the programme. Motor vehicles, furniture and appliances with serial numbers are also accepted collateral.
Importantly, there are no processing fees, thus borrowers can be assured that no monies will be deducted from the sums they receive, once the loan has been approved for disbursement.
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