NBC Bank supports farmers through a long-term tractor loan

02Jul 2022
The Guardian
NBC Bank supports farmers through a long-term tractor loan

The National Microfinance Bank (NBC) has officiated its tractor loans service that will help farmers to easily acquire modern tractors to help them commercialize agriculture in the region.

The loan is part of the NBC Shambani product allows farmers to pay only 25 percent as a down payment and the rest to be paid in the range of one to five years depending on agreements.

Handing over the first tractor, The Ruvuma Assistant Regional Administrative Secretary, Bakari Mketo commended NBC for initiating the service that will enable more farmers to access modern agricultural facilities that will boost production in the region.

Ruvuma is one of the top regions in production of food crops hence the service is of high value to the farmers as it improves efficiency in production activities.

According to the Regional Office data, the region has a total of 4,007,746 hectors of land that suits agriculture whereas in the period of Five years (2015/2020) the region achieved to produce a total of 8,547,816 tons of food crops.

 The Songea NBC Bank Branch Manager, Frank Kiranga said the service is dedicated to all type of farmers in the Ruvuma and neighboring regions with the sole aim of improving efficiency in agriculture.

“To secure this loan is very easy; first, a farmer needs to have a farm of at least one hectare with either a traditional or official tittle deed and purchasing contract. Then, you can pay 25 percent of the whole loan and the rest will be paid in terms from 1 to 5 years,” he said.

Chacha Marwa Mwikwabe, he is the first customer to enjoy the service who thanked NBC for initiating the service that turned his dream of owning a tractor into reality. He believes that the move will help him to commercialize farming.

The total value of one tractor accounts to Tsh 62 million whereby 25 percent of the whole loan stands at 15.5 million as down payment.

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