Apply for a Loan at Land Bank | Options in South Africa
Land Bank is a development bank owned by the Government of South Africa. The minute you finish reading our article, you will know exactly what to do to apply for a loan at this bank. You will be given information about the different loans available, the requirements you need to meet and how to use a calculator to plan your finances.
What are the Requirements for an Agricultural Business Loan at Land Bank?
The Land and Agricultural Bank of South Africa, aka Land Bank was set up in 1912 by the South African government to promote development in the agricultural market. Although this bank is owned by the State, it is still a company that needs to generate profit in order to sustain its business. Also, Land Bank does not receive direct finance from the government. This means that, unlike what many people think, you will not find grants or subsidies at this bank.
Before we move on to listing the requirements you will need to meet to take out a loan at Land Bank, let’s make it clear that the business loans you will find at this bank are only for the purpose of helping out farmers and agricultural businesses to grow their production. So, you need to be in the agricultural market in order to apply for these loans.
That said we’re ready to continue with the requirements:
- Being a citizen of South Africa
- Having a good credit history
- Presenting a business plan
- Having enough security that can guarantee the amount to be borrowed
- Being able to repay the loan
Does Land Bank have a Loan Calculator?
Loan calculators are perfect ways of simulating the loan you are about to take out. When you use one of these financial tools, you need to enter information about the loan, such as the amount to be borrowed, the interest rates to be applied and the term in which the loan would be repaid. Then, this calculator automatically generates results showing you the approximate amount you would pay in installments. Thus, these calculators are useful since they would allow you to plan beforehand and know if you would be able to afford the loan. Unfortunately, Land Bank has not yet designed a loan calculator for their agree loans.
How does the Application Form Works for a loan at Land Bank?
If you are a farmer or an agro-processor and wish to take out a loan at Land Bank you should know how the application process works. First, it would be a good idea to read the following paragraphs to find out more about the credit facilities that can be found at this bank so that you can choose the one that fits your situation best. Second, you will have to fill in an online form with all of your personal information and providing Land Bank with all the details of your production, farm or company: where it is located, what is it you need to do with the money (buy land, equipment, livestock, etc.). Finally, Land Bank will set with you a date for an appointment to start moving forward (this appointment might be over the phone or in person).
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What Kind of Loans does Land Bank Offers for Small Business?
If you are an emerging farmer or you own a small business and need finance to start your own agribusiness, you are at the right place. Land Bank provides credit for different purposes related to the agricultural market. For instance, you could ask for a loan to buy a farm and start your own production. Another option is requesting finance to buy machinery, and farm equipment, such as tractors or conveyor belts. Another option might be asking for a loan to make some improvements on your farm.
As we explained above when we talked about requirements to access to these loans, you need to have drafted a business plan. This is a non-negotiable requirement. However, Land Bank knows that some clients, especially emerging farmers, might have difficulties in designing this plan since they might have never done such a thing. If this is your case and you need help with it, you should contact Land Bank to hand you their business plan template that you can use as a model.
Should you Provide Land Bank with Collateral for the Loan? Is Land Bank Legit?
You will need to provide security or collateral to ask for a loan with Land Bank. Collateral is an asset that you pledge as guarantee of payment. That is to say if you are unable to repay the loan, the collateral will be used to procure payment for the lender. However, this bank is aware that some farmers might not be able to comply with this requirement and so these farmers are encouraged to contact a bank representative to find an alternative.
As regards to the question if this bank is legit… This company is owned by the Government of South Africa so of course that you would be dealing with a legit and reliable institution. Moreover, Land Bank is duly registered with the National Credit Regulator. For this reason, the bank has to abide by the rules and norms established by the National Credit Act. If a credit lending company does not comply with the rules enforced by the NCR, the company might be subject to punitive measures for the contravening action.
Should you have any other question or concern, don’t hesitate to leave us a message below. We will be happy to help you solve all your doubts. Also, if you are a customer of Land Bank and would like to share your experience with the community, you are invited to leave us your comment.
The Land and Agricultural Bank of South Africa is a government owned bank that specializes in the provision of financial services for the agricultural sector. The aim of Land Bank is to help to finance farm production since agriculture is the basis for developing economies. In this article we discussed the types of loan that can be found at Land Bank: loans for emerging farmers and small businesses to buy a farm, machinery, livestock, and more. We also talked about requirements to be met and how to apply for one of these loans.
Questions and answers
Do public servants qualify for a loan to finance a farm land?.
As public servants, you can resort to Land Bank of South Africa to finance a farm land. In this way, you can access the Blended Finance Scheme which is supported by the Department of Agriculture, Land Reform and Rural Development. You will qualify for a 50% loan, while the government will provide a 50% grant.
I'm unemployed and want a huge loan to purchase a sugar cane farm which is already producing.
Unfortunately, you will not be able to apply for a huge amount of money, or loan with Land Bank if you do not have a permanent job with a steady monthly income. Therefore, if you wish to purchase a sugar cane farm, the recommendation is to contact the entity to check about their loan offers and policy.
How do I get an application form?
There are two possible ways in which you can obtain a loan application form from Land Bank, which is a financial company that provides monetary assistance to the agricultural sector. One of them is by visiting the nearest local office and the other way consists of submitting an online application.
I am a small farmer and want to plant 125 ha soya beans, so looking for loan amount of R500,000.
It will be possible for you as a small farmer to obtain a loan of about 500,000 rand to plant soya beans with Land Bank, as this company offers monetary assistance to the agricultural sector. In order to borrow the money, you will need to follow their specific loan application. Please, prepare a business plan, gather all the documentation and submit the application which will be subjected to approval.
I want to apply for a livestock loan at Landbank.
In South Africa, Landbak is a specialized institution that provides agricultural financial services. If you wish to obtain a livestock loan, you will need to follow certain requirements. For instance, you must present a business and farming documentation, a business and financial plan, collateral, and proof of earnings. Also, the bank will consider if you have a good credit history.
With blended finance, do l need collateral if l'm unemployed when applying for a farm loan?
Usually, Landbank requires applicants to present collateral as a way to make sure that the borrower have the means to afford the loan. In your case, being unemployed may affect your application for a farm loan with blended finance, since the entity analyses the affordability capacity of the client to be able to repay the loan.
I am an emerging farmer, with a farming enterprise that I registered by the year 2021. At the moment I don't have a business plan, I was asking how can I get a business plan template that Land bank can help with?
As an emerging farmer with a farming enterprise that you registered in the year 2021, you will have great possibilities with Land Bank. For sure, they will be able to assist you with a business plan template. Also, they will be willing to provide you with a loan to launch your business.
I'm interested in live stock farming and I will buy my mother's land where my parents live in. I am currently working. What do I need to get a loan to buy live stock?
If you are interested in live stock farming, and you will buy your mother's land, it is important that you comply with some criteria. You need to be a South African citizen, have a good credit history, present a business plan, have enough affordability capacity to pay the loan and a regular income.
I am currently working, and I want to start a farming business, live stock . I do have a debt with a certain bank . Can that make me not to get a loan with land bank?
If you are currently working, and you want to start a farming business: live stock, it is important that you have a positive credit history. The bank will analyse all your financial situation before granting any money. Also, you need to demonstrate you have the means to pay the loan back. The suggestion is to cancel the existing loan completely before asking for more money to Land Bank.
How much can I qualify for?
First, in order to know how much you can qualify for a loan with Land Bank, you will need to provide the following information: your credit history, a business plan and a guarantee to demonstrate you have enough affordability capacity. All of these factors will be analysed and will determine how much you can borrow.
How do I get a loan to buy livestock? What are the requirements?? Can you get a loan for livestock on a farm that belongs to the government, but you are renting it from the government? And can you get a loan to buy a vehicle (farm bakkie) for the farming as well.
Land Bank offers economic help to promote farm and agricultural business. If you need money to buy livestock, you will need to be a South African citizen, have a good credit profile, present a business plan, count with a guarantee and prove that you can pay the loan back. With this money, you will be able to buy the necessary equipment as well as machinery like a vehicle.
I'm interested in live stock, but I'm unemployed, I need a start-up loan to run my own business. Which document do I need to apply for loan?
Lank Bank offers economic aid to foster development in the agricultural sector of the market. Also, the bank provides help to local farmers who are seeking to grow their business. First, it is important that you are part of the agricultural market. If you are interested in live stock and need a loan to start your business, you have to present a business plan, have a good credit history and demonstrate that you have enough money for the repayment period.
We, at Phoka Primary Cooperative Zastron, want to purchase a farm around Zastron, and we have identified the farm. So we need finance of R3 million to buy the farm in order to create jobs and grow the economy.
If you are part of a cooperative in Zastron and are interested in buying a farm valued in 3 million rand, there are some requirements that you need to comply with. It is crucial to be a South African citizen, have a good credit history, present a business plan together with a guarantee and have enough means to pay the loan back.
Hi, how can I apply for loan as I need to purchase a farm?
In order to apply for a loan with Land Bank to purchase a farm, there are certain requirements that you need to comply with. For example, the client must be a South African citizen with a good credit history and enough affordabilty capacity to repay the loan. Furthermore, you must hand in a viable business plan.
DEAR LAND BANK STAFF, I WANT TO TAKE OUT A LOAN.
Landbank provides finance to agricultural companies or farmers to help them grow their production and, in turn, grow the economy of the country. For you to take out a loan with this bank, you will need to fulfil certain requirements regarding security and affordability. Please, get in contact with Landbank to start your application.
Does Land Bank provide agricultural loans?
Yes, it does
Are there loans in long term?
Yes, there are different options.
Can I get a short term loan at Land Bank?
Yes, you definetely can.