| Loan parameters and
Conditions for ADB Farmers Drive Motor Loan Scheme |
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The ADB Gold Drive Motor Loan for Farmers is designed purposely for
our cherished farmers and fisher folks.
Branch Coverage:
All 47 branches of the Bank (Countrywide)
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Target Groups |
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High net worth Cocoa Farmers ,Fisher folks and Exporting Farmers who desire to
acquire brand new vehicles through the ADB Gold Drive Motor Loan for Farmers.
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Type of Vehicles |
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Customers of ADB Gold Drive for farmers can
pick up their brand new vehicles available from selected partner motor vendors
such as:
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Pick-ups
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Light trucks
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4-wheel drives
Vehicles supplied by vendors may be customized to the needs of the farmer to
make it more affordable.
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Key Qualification Criteria
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General Conditions Applicable to all Farmers
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The farmer would be required to allocate at least 20% of his/her annual gross
sales income (i.e. ¢ 50 million) towards servicing the loan per annum.
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Must have clean repayment record with ADB or with previous bank.
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Must have a fixed known (residential) address.
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Specific conditions
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Cocoa Farmer
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The Cocoa farmer must be selling his/her produce (cocoa, coffee and
shea-butter) to a recognized licensed buying agency of Cocoa Board for the past
5 years
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The Cocoa farmer's loan application should be recommended by a recognized
licensed buying agency of Cocoa Board. The Cocoa Farmer must have the capacity
to sell at least 400 bags of produce annually and earn gross income of not less
than ¢ 225.0 million per annum at current prices.
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Commercial Crop, Livestock Farmer and Fisher folk
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Must be registered with a recognized body or association know to Ministry of
Food & Agriculture or other government agencies
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Must have documentary proof of gross sales income in excess of ¢500 million
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Exporting Farmer
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Must be registered with Ghana Export Promotion Council or Export associates
affiliates
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Strategic Partners |
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Ministry of Finance & Economic Planning
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To monitor participating LBC's role/performance regarding their obligations to
effect beneficiary farmer's installment deductions and pay same into the
farmers Loan Repayment Savings Account with ADB
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To ensure (through LBC) the loan repayment performance by farmers for the
sustainability of the loan scheme
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Cocoa Board
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To liaise and monitor repayment obligations of Cocoa Farmers
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Local Cocoa Buying Agencies
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Should have business accounts with Adb and agree to deduct at the source loan
repayment obligations of the Cocoa Farmer
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Registered Motor Vending Partners
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Provide a wide range of vehicles to make choice easy and exciting
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Minimum Contribution by
applicant
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10% of the final price of the car (Inclusive of the VAT registration,
comprehensive and loan protection insurance premiums)
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Frequency of Loan Repayment
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| Quarterly or Half yearly repayments are
permitted
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Interest Rate
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| ADB base rate (Currently at 19.5%)
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Processing fee
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No processing fee shall be charged
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Account linkages and minimum
balance
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Savings account with a minimum balance of the first quarterly installment
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Balance would be earn premium interest rate
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Risk and collateral
Consideration
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You shall access the facility upon satisfying
the criteria above and also submit the following:
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For Cocoa Farmers
Tripartite agreement between LBC, (the Principal buyer only as a witness to the
Agreement of the produce), beneficiary and ADB inclusive of the following
critical Obligations;
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Recommending LBC's to undertake to pay proceeds of sale of clients directly to
a specified account at ADB during the period of the facility. The Bank shall
take lien on the landed properties and assets there on
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During the currency of the facility the Cocoa Farmer would be obliged to sell
his produce through the sponsoring LBC only
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The association of LBC is to collaborate to ensure that no beneficiary farmer
diverts his produce to another (other than the recommending LBC) during the
period of the facility
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For Commercial crop, livestock Farmer, Fisher folk and Exporting Farmer Loan
agreement between Bank and Client should be witnessed by the recognized body or
association known to Ministry of Food & Agricultural or other Governmental
Agencies
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Applicable to all Farmers
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All vehicles shall be registered in the joint names of the client and the Bank
and assigned per out tripartite agreement
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Additionally the vehicle shall be comprehensively insured in the joint names of
Bank and the Client with the Bank noted as the loss payee
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All successful applicants shall be required to pay premiums towards a loan
protection insurance policy to indemnify the Bank against loan loss due to
death and incapacitation
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The pricing of the loan protection premium would take note of the advanced age
of the average Cocoa farmer (about 65 years)
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Documentation and pre-screening
Two (2) Passport-size pictures
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Passbooks, ID card (such as Passport, Voters IDs acceptable)
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Records of sales to LBC's, exporting agencies etc
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Passbook records. Last 6 months statement of current and savings account if
available
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Loan Period
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Up to 60 months (5 years)
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Apply Now |
