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High Interest Rates Making It Difficult For Farmers To Get Loans From Banks - Farmers' Union

5 years agoMon, 31 Dec 2018 14:14:07 GMT
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High Interest Rates Making It Difficult For Farmers To Get Loans From Banks - Farmers' Union

The Zimbabwe Commercial Farmers’ Union (ZCFU) condemned the high interest rates charged by banks since the dollarisation of the country’s economy.

ZCFU president Wonder Chabikwa said that the interest rates being charged by banks are inhibiting the growth of the agricultural sector. Speaking to the Daily News, Chabikwa said,

Farmers are not accessing loans from banks as we can’t afford to remit. Interest rates were ranging from 10 to 18 per cent and when we dollarised they went up to as high as 30 per cent. This has made the loans very inaccessible. Agriculture is a primary industry, it can’t afford those high interest rates.

We need an agricultural bank whose loaning conditions are geared towards what used to happen in the past. We are not talking about re-inventing the wheel, let’s just flip back on pages and see what conditions were in place when agricultural production was at its best.

… In the past farmers used to put up land as collateral, nowadays the banks don’t want to use farms as collateral, they prefer using physical houses in urban areas, which is unsuitable because a house is for the family and it’s not in any way linked to business and as such farmers have been losing their houses to banks for failure to repay loans.

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More: Daily News

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