LAND BANK
PRODUCT PRESENTATION
31 AUGUST 2010
133 Church Street
Pietermaritzburg
Tel No 033 – 845 9600
Fax No 033 – 345 8317
www.landbank.co.za
The Land Bank
The Land Bank is an Agricultural
Development Bank that provides
Financial services to a diverse
range of clients in the agricultural
sector only.
AREAS OF FOCUS
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To provide finance to all agricultural
economic and agri-business sectors.
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Meeting the needs of resources for
farmers and rural poor.
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Contributing to rural development
aimed at providing stability.
Pre-requisites
1.Land
Persons/groups who have valid access
to farming land in their own name ie:
 Own property (registered Title Deed)
 Leased land (valid lease agreement)
 Tribal Land (valid agreement with
Tribal Authority and/or Ingonyama
Trust Board).
Pre-requisites (cont.)
2.Production Facilities
Persons who own or who have
legitimate access to production means
(ie. tractors and implements)
Pre-requisites (contd)
3.Experience
 Courses attended
 Prior or current work experience /
knowledge in a related field.
 Management ability to make
business/venture a success (records
of current and/or previous
enterprises)
Pre-requisites (contd)
4.Mentorship
 In the event of purchase of land – commitment
from the seller or a suitable person to mentor for
a certain period
 Assistance from established farmers in the area
 Extension services from the Dept of Agriculture /
Industry specialists (ie.Canegrowers / Sappi
etc)/ NGO’s etc
 Involvement within structures of local
Municipality with regard to possible projects (ie
IDP of Municipality)
Pre-requisites (contd)
5.Credit Worthiness
Application must be agriculturally justified
 Must be a positive repayment ability
 Must have a good credit history
 No write off of debts or judgments
reflected on Credit Bureau
 Previous credit history with Land Bank if
applicable
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PRODUCT RANGE
Long-Term Mortgage Loans
 For any agricultural related purpose.
 Well established commercial farmers who
have proven track records and credit
history and own or wish to purchase fixed
agricultural or agri-business property.
PRODUCT RANGE (contd)
Special Mortgage Loans
 Specifically for the first-time purchase of
agricultural land by the previously
disadvantaged.
PRODUCT RANGE (contd)
Medium-Term Loans
 Medium term loans for the purchase of
farming equipment, implements, livestock
or fixed asset improvement.
PRODUCT RANGE (contd)
Instalment Sale Finance
 A hire-purchase type medium term loan for
the purchase of registered movables such
as bakkies, trucks, tractors, registered
implements and equipment cane
harvesters & loaders and trailers.
PRODUCT RANGE (contd)
Establishment Loans
 Medium term loans for the establishment
of perennial crops such as citrus and
deciduous fruits, Forestry and sugar cane.
PRODUCT RANGE (contd)
Production Credit
 Loan finance for agricultural inputs such
as fertiliser, seed, fuel, chemicals and
pesticides, packaging, stock feed and
fodder, transport costs and marketing
costs.
 Also available for planting of vegetables,
grain etc
PRODUCT RANGE (contd)
Livestock Product
 The purchase of livestock using additional
livestock as security by use of microchipping.
 Cost of micro chipping per animal : R100 +
vat and a annual administration fee of R25
plus vat per animal
Application Requirements
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Application fees.
Certified copies of page 1 of ID document. If
married copy of spouse’s identity document as
well as marriage certificate and certified copy
of the Antenuptial Contract (if applicable).
If applicant is an entity:
-Company :- Memorandum & Articles of
Association and Certificate of Incorporation.
-Close Corporation :- Founding Statement.
-Trust :- Trust Deed and Letter of Authority
-Partnership :- Partnership agreement.
-Co-operative: Certificate of Incorporation and
Constitution
Requirements (contd)
Business plan
 Projected cash flows for 2 years
 For purchase of loose assets: -(vehicles,
tractors, implements, livestock etc) quotation.
 For improvements: -(buildings, dairy &
irrigation equipment etc) -quotation and/or
estimate & plan for building
improvements.
 For planting of crops: Quotations from
contractor and supplier of inputs (eg cooperative)
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Requirements (contd)
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Copy of Bank statements –
Cheque account – 3 months
Savings account – latest statement
Proof is to furnished of any other income (eg,
salary, pension, business interest’s etc).
Proof of all debt (from creditor).
Investments, shares, policies (surrender value)
Vehicles, tractors and other registered movables
ie certified copy of registration certificates. As
proof of ownership.
Brand Mark” certificate issued by the Registrar
of Animal Identification as
required by Livestock Brands Act 87 of 1962.
Requirements (contd)
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Sugar cane growers- mill certificate.
For applicant’s who farm on rural/tribal land :
- Affidavit from Tribal Authority confirming right
to farm the relevant land or lease agreement by
Ingonyama Trust Board if applicable.
- Report to be completed by an official of the
Department of Agriculture.
Statement and Proof of Assets and Liabilities
(Assets to exceed Liabilities);
FICA documentation (proof of Residential
address (utility bill));
Thank you
Questions ???
Land Bank Pietermaritzburg Office
Nkululeko Cyril Zondi
Cell. No. 084 677 4997
Tel. No. 033 845 9626
nczondi@landbank.co.za