Prime linked and risk based.

The asset loan allows the institution to finance eligible clients for acquisition of fixed assets that can be used for increasing farm productivity and production efficiency. Such assets included irrigation equipment (water tanks, water pumping machines etc.) dairy cow, greenhouses, tractors etc. and/or any asset that can be used for boosting farm production

Financing for start ups allowed but subject to experience and eligibility. More focus should be on those who already have well established businesses

Agricultural loan officer farm visit report. Minimum of 1 year experience in crop enterprise or qualification of the clients in relation to loan requested. Collateral required. Account with LPB . 3 months bank statement. Proof of ID/passport. Map to the client's residential place: owned and rented.

Agricultural loan officer farm visit report. Minimum of 2 year experience in operation agricultural businesses. 80% of the assets value. Client should at least be 21 years old. The asset ( tractor/vehicle) will be purchased at authorized dealer recognized by LPB. The list f dealers will be regularly updated. Client should have a good reputation in the community. Collateral require the document for the assets e.g. vehicle doc will be surrendered to LPB as part of security. the value od security must be at least 125% of the assets loan. Assets should be insured with reputable firm. Account with LPB . 3 months bank statement. Proof of ID/passport. Map to the client's residential place: owned and rented.

Maturity of assets loan shall depend on applicant request but should range from 1 year to 5 years. Generally, could be 3 years with the exception of plant and construction. Limits: adopt current lending limit process. Only 80% of assets value is financed the balance borne by the client. As a general rule crop instalment must be paid monthly as much as possible. Grace period and other form of irregular payment is allowed where deemed necessary.