The Importance of Owning a Farm

Since being a farmer and assigned with roles of searching and comparing a wide range of products that could best suit your activity, in order to archive the best standards, it is significant to own a personal land which will give the assurance in product performance with a reduction in cost of production, high self-esteem, and being able to get maximum support of finances heading to maximum profits. The individuals benefitting now experience abundance of success and the references are in the magazines showing the legitimacy of the product.

For legitimacy application of the loan, current bank statements, letter of introduction from the bank will be of use to assure the loaning institution of active accounts for the client

The applicants will be require to provide personal details which should be the names, passport photo, tax pin, date of birth, marital status, gender, contacts details  for eligibility  for the loan the applicant must be 18year and above, a citizen of the country and provide  the  identification materials, account numbers if they are many, physical address, postal address, L/R number if available, additional details will need the spouse details and the contacts of the next of kin and the relationship between the two.

            For the official part the farmer must enter into a contract with lender describing the terms of trade, the consequences of breaching the contract and the policy, this will provide security of client against failure to payments, which will provide the land rates on how the partial payment or full payment.

The applicant will be able occupy the land provided with principal residence area for at least half a year, from the date of contract agreement within 1 year of settlement and use of the land. Purchasing through the institution will give rise to interest rates of the total investment, the owner will be provided with ownership document upon full payment of the required amount.

Introduction of spouses as next of kin will require supporting documents for both parties to be able to occupy the land jointly or separately. The information provided should be to the best of client’s knowledge and signed according to the term and conditions of the institution.

            Repayment plan is based on interest rate of the loan acquired and the system used is according to installment, giving rise to a principal land tax, For example, For every 1000$ of the loan a 5% interest will give a monthly schedule of  18.87 for 5 years repayment plan on a reducing balance which the land tax rates are levied. Also for 10 years repayment plan on reducing balance will impose interest rate of 5% of every 1000$ to give 10.61$ on each installment

TABLE

#

“payment date”

”opening balance”

interest

principal

”property tax”

”total payments”

”closing balance”

”# remaining”

1

$198,788

$827

$245

$375

$1,448

$198,543

354

2

$198,543

$826

$246

$375

$1,448

$198,297

353

3

$198,297

$825

$247

$375

$1,448

$198,049

352

4

$198,049

$824

$248

$375

$1,448

$197,801

351

5

$197,801

$823

$249

$375

$1,448

$197,551

350

6

$197,551

$822

$251

$375

$1,448

$197,301

349

7

$197,301

$821

$252

$375

$1,448

$197,049

348

8

$197,049

$820

$253

$375

$1,448

$196,797

347

9

$196,797

$819

$254

$375

$1,448

$196,543

346

                The interest is based on a reducing balance from the principal tax; the straight line repayment is not imposed on the land purchase for clients in order to provide the ease of paying the balance with reduced pressure.

The purchase price: 200,000

Interest: 5%

Duration: 5 years

The loan amount: 150,000$

Loan start date: 01/01/2019

Land ownership is entailed with documents which will be processed with the institution through the land board involving procedure to acquire the title deed for the owned land after the complete payment; this goes in hand with the business accounts for the clients’ agriculture business. The loan is awarded for active participants who are willing to acquire land of their own, through the institution support and commitment.