Micro-finance institution giving farmers affordable loans

13Nov 2019
The Guardian Reporter
The Guardian
Micro-finance institution giving farmers affordable loans

SMALLHOLDER farmers and business owners who join Jatu Saccos and buy shares in Jatu Plc, the savings and credit cooperative’s subsidiary company, can get loans which attract only 10 percent interest payable in between 6-12 months.

Jetu Plc’s founder and CEO, Peter Isare speaks at a stakeholders’ meeting.

The beneficiaries can also get health insurance cover for their families from Sanlam Insurance or Strategis Insurance companies by parting with 230,000/- per annum for a family of six (including four children).

Jatu Plc General Manager, Asifiwe Mzava said in Dar es Salaam this week that the company is mainly focused on smallholder farmers and small business owners because of the growing demand by the groups to acquire affordable loans to invest and grow their businesses.

“Our main goal in targeting farmers is to help them get affordable credit to invest in farming and graduate into commercial farmers instead of continuing with subsistence farming,” said Mzava who called on farmers to join Jatu Plc as a prerequisite to become Jatu Saccos member which allows them to get cheap loans.

“In order to become a Jatu Plc shareholder, one needs to pay 30,000/- registration fee, 10,000/- membership fees for the Saccos but also buy at least 50 shares,” he stated while noting that members are also supposed to deposit at least 10,000/- every month as deposit for their account.

After completing the membership process, one can also get a loan to invest as capital to expand their businesses or invest in a new business. “We have all types of loans although our focus is on farming,” he added while payment of the loans is by instalment as per the borrower’s ability.

He said in order to qualify for the loans and other benefits, farmers need to meet all the membership conditions including payment of all contributions and have a good credit history in addition to having guarantees who are the Saccos members.

“Borrowers also need to be Saccos members for at least three months since attaining official status,” the Jatu Plc General Manager stated while echoing the group’s slogan of ‘Borrow with investment goals, repay timely.’