Agricultural Loans & Seasonal Overdrafts

Seasonal Overdrafts For Agriculture

This is a seasonal facility made available to the agriculture sector, mainly tobacco growers to assist with the growing and marketing of the crop.
Other commercial enterprises elligible under this facility include seed maize, tea, coffee, sugar cane and livestock producers.

Borrowers are allowed to overdraw their current accounts against agreed cash flow projections up to an agreed seasonal limit.

The facility is available either in Malawi Kwacha or US Dollar depending on the currency of the revenue streams.
This facility provides farmers with seasonal financing requirements e.g. fertilizer and chemical purchases, payment of wages and rations, tenants' crop purchases, transport etc.
The Bank allows draw downs monthly, quarterly etc. in line with cash flow agreed between customer and the bank.
Qualified Agricultural Officers visit customers, to give advice where necessary.
The Bank monitors proceeds of sales received from Auction Floors and other established markets. The Bank registers a Tobacco Stop Order with Auction Holdings Ltd or enters into irrevocable arrangements with produce buyers to pay sales proceeds through growers' accounts with the bank.
Interest is charged at an agreed rate, usually a fixed number of points above the base rate.

Prospective Customers

  • Smallholder farmers with not less than 3 years experience in growing tobacco.
  • Sole proprietors, mostly Malawians in the rural areas, who farm on their own land or leased land.
  • Tobacco farmers.
  • Commercial farmers.
  • Limited companies engaged in the growing of tobacco   and other commercial crops.

Special Requirements

  • Customers are usually required to put up a contribution of up to 40% of the total financing requirement from their own funds.
  • Crops must be grown on land held on a freehold or leasehold by the farmer and grower must be registered with the authorities where applicable



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