How to Obtain Land Bank Loans in Johannesburg? Frequently Asked Questions and Rates
The agricultural business is complex. Sometimes the market is full of options regarding agricultural loans and some other times, the options are shortened. Depending on what you are aiming at, there are different companies offering varied products and services for you to enjoy. If you are interested particularly in finding loans in Johannesburg, I’m afraid you won’t find Land Bank loans there because there are no branches in this area. However, there are other Land Bank branches closer to Johannesburg.
The story behind Land Bank
Land Bank is a company that was founded in the year in 1912 and it started exploiting and reaching its potential in the year 1997. The company was set up to contribute to the well being of producers, farmers and those customers that grow land and need the equipment to keep the business going. You will now go through some interesting bits of information about Land Bank.
Are there any specified qualifying criteria that you must have in order to access finance?
Of course there are some. In order to access finance from this company, you should:
a)Provide a clear and solid business plan
b)Show proof of affordability: you need to show the bank that you will be able to repay the loan
c)You must be a citizen of South Africa
d)You must count with enough security equivalent to what you borrowed in the first place
e)your credit record must be clean
There are some customers, especially farmers of the new generation that do not count with the credit profile or the security to meet the criteria that was stipulated by Land Bank in order to qualify. That is why Land Bank encourages its clients and applicants to come forward and get in contact with members of staff at the company. They will introduce you to the greatest financing options they have available at the moment.
Do clients need security or collateral in order to access finance?
Indeed. Land Bank requires you security or collateral to make sure that, if problems appear, they will still get the repayment.
What happens to those clients who are “blacklisted”?
In general and unfortunately, Land Bank does not assist those farmers. Nonetheless, if a potential applicant can bring forward some evidence that the debt they had has been paid off, they might consider funding, always following the requirements stipulated by the National Credit Act. If you are looking forward to apply, try to make sure to cover your debts.
The rates at Land Bank: what do they consist in?
In general, the rates vary from customer to customer. Land Bank considers a series of factors before providing customers a certain interest rate. In order to find out the most convenient rate for you, you can always rely on your nearest branch in Johannesburg to inquire more information about the rates offered.
Do clients have to pay interest?
Yes, they do. Like any other company, Land Bank must follow the development mandate and some banking principles. The government dos not provide Land Bank with direct financing, so in order to fulfill the mandate, the members of Land Bank, in order to raise funding, they turn to commercial markets. This means that the interest being charged is made in relation to these costs. In order to provide greater flexibility and affordability, Land Bank can provide customers with subsidy facilities.
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How are the terms of loan repayments?
The periods for repayment are quite different and they vary according to the loan’s term. There are three main repayment periods:
-from one to three years, you get a short-term loan
-from three to twelve years, you get a medium-term loan
-from 12-15 years, you obtain a long-term loan
If clients are interested in buying a farm, do they need to pay a deposit?
Land Bank requires from customers to pay a deposit in order m¿to make sure that the process starts. Land Bank finances 100% for brand new products like:
If the product is not brand new, then Land Bank finances an 80% of it. There are, nonetheless, alternative possibilities that you can turn to. You can inquire more about these possibilities by sending an email to the company or visiting a branch.
Does Land Bank provide clients with grants?
Unfortunately, the bank does not offer grants. If you are looking for grants as a way of agricultural financing support, then you should turn to the Department of Agriculture, Fisheries and Forestry.
Does Land Bank take a lot of time in processing applications?
The nature of the application will determine the time it will take. The process generally consists in three simple steps:
-The client lets Land Bank know what they came for. They must fill an enquiry form. They can do this in person on online. It must be very complete.
-Book an appointment: Once Land Bank has received your enquiry, they will notify you. Then, an appointment will be arranged in order to carry out the application process.
-Obtain the results you need: you will be guided through the whole process to apply. You will receive a notification of the outcome.
Where can customers find other branches?
Although there is not a branch in Johannesburg, there is one located in 78 St. Andrew Street. It can be found in Bloemfontein, 9300. The number that you should call is 0514041400. You can explore other offices through Land Bank’s website.
All in all, there might not be offices in Johannesburg but you can still get the loans you need from there by applying online. Remember that the company will help in whatever you may need. If you have questions or you feel confused about the information you’ve found, you can always make a phone call and have a more direct conversation. You can always ask for different ways of financing. The members at Land Bank will make sure that you are satisfied with what you obtain there. Start today working your way up!
Questions and answers
Does Land Bank assist clients with plans for drafting business?
Once a loan is given, does Land Bank give technical support to farmers?
A partner organization will assist you.
Are there branches in Port Elizabeth?
Yes, there is only one office there.
Land Bank was a great option for my agricultural business
The guarantees offered at Land Bank gave me a sense of security
You can improve your credit scores and apply for more competitive rates at Land Bank