What is Nafaka Loan?

A seasonal loan that enables farmers to purchase farm inputs and finance crop production.

Features

Financing for seeds, fertilizer, land preparation, crop management, and harvesting
Suitable for individuals’ farmers, groups, CBOs and self-help groups
Flexible repayment aligned to the crop cycle, with bullet payments at harvest
Unsecured and secured options available, including crop insurance
Fast approval within 48 hours and phased disbursement based on farming needs

How does it work?

Open an account with Faulu
Farmers who have been involved in growing the same crop. This to be proved by funds in the bank for the previous crop’s proceeds
Request to be supported by quotations and appropriate budgets
Ability to repay-we shall lend a maximum of 70% of the previous season’s proceed from the crop harvested
Provide appropriate conventional collateral and clean credit history evidenced by a credit reference bureau report
Duly completed credit facility application form
PIN certificate and National I.D. (original and copy)
Certificate of registration (in case of registered enterprise/sole proprietorship)
Bank and Mpesa statements as evidence of earnings

Want to know more about Nafaka Loan?

If you want to know more, we've put together some frequently asked questions for you.

Applicable conventional collateral i.e. Logbook for motor vehicles, tractors, trucks or title deeds. Bank margins on the collateral to apply
Logbooks on Tuk Tuks, motorcycles, PSVs will not be accepted

Compulsory Crop Insurance cover through Faulu Bancassurance capitalized as part of principle if the customer cannot afford it.

Interest spread and paid in equal installment within the loan term
Bullet payment to clear the loan upon receipt of the earnings or payment from the farmer upon maturity of the loan whichever comes earlier

Compulsory Crop Insurance cover through Faulu Bancassurance capitalized as part of principle if the customer cannot afford it