Such business must be owned or managed by a veterinarian or a veterinary paraprofessional.
These outlets must be stocking livestock and crop protection products only .
Types of agro-vet loans
Two types of loans will be available:-
i) A long term loan.
This is to finance working Capital requirements or purchase of assets. It can also be used for off season re-stocking with agro-vet products. It will attract an interest rate of 18% per annum with a repayment period of 12-18 months.
A short term seasonal loan
This is for re-stocking agro-vet with products during the high season periods (during long and short rains and planting season). Other features on these two types of loans are as shown herebelow. It will attract an interest rate of 2.5% per month with a repayment period of 3 months.
How To Access K-Lift Loans:
The agro-vet loan is available to any agro-vet that is registered by the relevant regulatory bodies such as The Kenya Veterinary Board, Pest Control Products Board etc. It is available to Individuals, partners, companies, organized groups or Co-operative Societies . A completed Business proposal along KLIFT guidelines. The application form is available from the Head Office Kabete, from Kericho and Nyeri branches and from K-LIFT agents. The application form will cost K.Sh.300/- per copy. Proposals can also be downloaded here.
Loan Structure
Loan Ceiling
For first time loanees and using agro-vet stock for security the maximum loan will be K.SH 100,000/- and if securing through a title deed the maximum will be K.Sh.200,000/- . After successful repayment of the first loan, the ceiling for a second loan will be Kshs.200,000 to 1.2million. Depending on the applicant’s risk profile. any amounts above K.Sh.200,000/- must be fully secured.
Security - Various options:-
i) Title deed for land or property in urban or rural area.
ii) Chattels mortgage for a motor vehicle, motor cycle or other immovable properties. This is accepted only as a top up to other securities.
iii) Third party guarantee. A Registered Power of attorney should be obtained for such a guarantee.
iv) Shares from Public quoted companies.
v) Veterinary Product stock in an agrovet (Hypothecation). Agrovet must have been in stable business for a minimum of 6 months and keeping proper business records. For loans above K.sh.100,000/- but below K.Sh.200,000/-Chattels mortgage for a motor vehicle or motorcycle will be required.
Conclusion
K-LIFT will generate social and economic benefits resulting from enhanced empowerment of enterpreneurship in the Agricultural sector. By doing so, it will contribute to lifting Kenyans from Poverty.