PRODUCT PRESENTATION 31 AUGUST 2010

LAND BANK

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 FOCUSAREAS OF FOCUS

To provide finance to all agricultural economic and agri-business sectors.

Meeting the needs of resources for farmers and rural poor.

Contributing to rural development aimed at providing stability.

Pre-requisites1.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)

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)

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

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 Loan finance for agricultural inputs such

as fertiliser, seed, fuel, chemicals and as fertiliser, seed, fuel, chemicals and pesticides, packaging, stock feed and pesticides, packaging, stock feed and fodder, transport costs and marketing fodder, transport costs and marketing costs.costs.

Also available for planting of vegetables, Also available for planting of vegetables, grain etcgrain etc

PRODUCT RANGE (contd)

Livestock Product The purchase of livestock using additional

livestock as security by use of micro-chipping.

Cost of micro chipping per animal : R100 + vat and a annual administration fee of R25 plus vat per animal

Application Requirements 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 co-operative)

Requirements (contd) Copy of Bank statements –

Cheque account – 3 monthsSavings 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) 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