The Agricultural Produce Finance facilitates trade in agric commodities by produce dealers who have adequate storage facilities

to stock grains and other commodities at harvest season.

Features

Minimum value is N100,000 and the maximum is N10 million. Applicants place of residence, warehouse and/or market outlets are verified/confirmed accessible all year round by the Agric Relationship Manager. Collateral: Letter of domiciliation of payment where a bulk buyer of produce is a trusted customer of FirstBank plus 10% cash deposit, landed property or marketable securities of 130% of loan amount, or other acceptable collateral

Benefits
Provides capital for produce dealers to expand their volume of business. Helps to stabilize the price of agric produce. Facilitates year-round trade in agric commodities. Enhances the cashflow of farmers/primary producers during harvest season. Ensures profitable disposal of farm produce in the face of poorly developed or non-existent marketing infrastructure.

Accompanying Documents

Customers letter of application Confirmed letter of irrevocable domiciliation of payment for proceeds from sale of farm produce/products by bulk-buyer in customers current account with FirstBank if sales is to a bulk-buyer. Call memo evidencing or verifying or confirming applicants place of residence, storage location and/or market outlets have been verified/confirmed accessible all year round by the Relationship Manager(Agric) and Retail Marketing team. Evidence of provision of acceptable collaterals e.g. letter of domiciliation of payment where bulk buyer of produce is a trusted customer of FBN plus 10% cash deposit, or landed property and/or marketable securities of 130% of loan amount, or landed property of 100% of the facility amount if supported by 25% cash deposit, or other acceptable collateral Relationship Manager's (Agric) Farm survey. Relationship Manager (Agric) confirms that applicant has a minimum of 3 years experience and has been in account relationship with any Bank for a minimum of 6 months.

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Commercial Agriculture Credit Scheme (CACS) is N200 billion Fund established by the CBN and the Federal Ministry of Agriculture and Rural Development as a strategic response to the lingering food and energy crisis worsened by the global financial melt-down. The fund can be accessed by medium and large scale integrated and non-integrated agricultural projects with with a minimum of N50 million net asset base. State Governments are also eligible.

Features

The Scheme is a partnership between CBN/FMA&RD and FirstBank. It provides credit for fresh investment/expansion of commercial agricultural enterprises. Eligible activities include cultivation of target crops (rice, cassava, cotton, oil palm, wheat, rubber, sugar cane, jatropha carcus, fruits and vegetables), livestocks (dairy, poultry, piggery) and fisheries. Credit support to the target commodities shall be administered along the entire value chain of Production, Storage, Processing, Market and Enterprise Development. Any other activity as may be specified by the Project Monitoring Committee (PMC). Loan tenor is between 5 - 7years. Pricing is maximum of 9% all in. To fast-track the development of the agric sector. To enhance national food security by increasing food supply. To provide loanable funds at no cost to the Bank. To address the needs of existing clients seeking cheap funding for major expansion. To support Government efforts in sustainable economic development using our expertise in agricultural financing

Benefits

Accompanying Documents

Certificate of incorporation Memorandum and Article of Association Audited accounts for 3 years or Management Account in lieu Letter of Application Proforma Invoice, bill of quantity as the case may be Feasibility Study or Business Plan

Agricultural Development Trust Fund Credit (ADTFC) is a tripartite arrangement between a trust fund provider, the Bank, and CBN (guarantor) to provide working capital loans for farm business.

Features

Farmer saves 25% of eventual credit need, while trust fund provider sets aside 25% and FirstBank provides 100% of farmers' working capital requirement. CBN guarantees 75% of the unsecured margin of 50%. Farmer enjoys 40% interest rebate under the CBN's Interest Drawback Programme (IDP) upon full repayment of facility as and when due.

Benefits

Widen the Banks client-base Creates new sources of deposit mobilization

Generates a crop of loyal customers Helps farmers who ordinarily can not provide collaterals for Bank credit Generate a stream of assets with minimum risks

The Guaranteed Fund Credit provides credit for various agricultural enterprises under a guarantee fund model. It derives its essence from the Agricultural Credit Guarantee Scheme of the CBN.

Features

Maximum tenor of 24 months inclusive of moratorium which may range from 3-12 months depending on the type of enterprise. Single obligor limit of N10 million. Applicant undertakes to bear the cost of agric insurance by NAIC and to notify NAIC, CBN and FirstBank of any peril within 48hrs. Activity to be sponsored is in season Relationship Manager's (Agric) farm survey report demonstrates technical viability, profitability, disbursement and repayment schedule.

Benefits

Customer enjoys a refund of up to 40% of interest paid on credit facility under an Interest Drawback Programme sponsored by the FGN and CBN. Access to credit facility even with only 25% cash security cover for the borrowing (up to N500,000). Participation in the prestigious Farmer of the Year Award of the CBN. Opportunity to create a safe, profitable and sizeable portfolio in the agric sector. Customers letter of application. Applicant undertaking to bear the cost of agric insurance cover by NAIC Evidence of applicants Savings Bank cash deposit balance of 25% of facility amount to be charged as security (for facilities of N500,000.00 and below). Relationship Manager's (Agric) confirmation that the application qualifies for ACGS guarantee Evidence of provision of acceptable collaterals in the form of landed property with adequate title, life assurance policy, or third party guarantee supported with assets with EFSV of 130% of facility amount, or 100% of facility amount plus 25% cash collateral (where applicable, for requests of over N500,000.00). Relationship Manager's (Agric) farm survey report.

Accompanying Documents

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LOAN RATE

MICROCREDIT AGRIC & COLLABORTIONS SME(PRODUCTION & WORKING CAPITAL) MARKETING, ON-LENDING TO MFBS & MICROCREDIT (NON-AGRIC)

12%

14%

20%

LOAN CONDITION

LIEN DEPOSITS MINIMUM CUSTOMERS' ACCOUNT RELATIONSHIP

20%

6MONTHS

DEPOSIT RATE

INTEREST RATE FIXED DEPOSIT

2% NEGOTIABLE