EmpowerBank has received 40 New Holland tractors with a 75-horsepower capacity for onward lending to farmers under a financing arrangement designed to improve access to agricultural mechanisation.
EmpowerBank said the facility was intended to make agricultural equipment more accessible, particularly to young farmers seeking to expand production and improve their farming operations.
“The delivery of the 40 New Holland tractors is an important step towards improving farmers’ access to mechanisation equipment and supporting agricultural productivity,” EmpowerBank said.
Under the financing arrangement, young farmers will benefit from an annual interest rate of 16%, while other farmers will be charged 20% per annum. However, both categories of borrowers are required to pay the same 15% deposit before taking possession of the tractors.
“The facility allows farmers to acquire tractors through an upfront deposit of 15%, with the remaining amount paid over a period of three years.
This arrangement is designed to ease the immediate financial burden on farmers while enabling them to access equipment needed for their agricultural activities,” the bank added.
At the stated purchase price of US$26,000 per tractor, the upfront deposit amounts to US$3,900, leaving a balance of US$22,100 to be financed before interest and any applicable charges.
The bank said young farmers would receive preferential financing terms, with their annual interest rate set at 16% compared with the 20% applicable to non-youth borrowers.
“The differentiated interest rates recognise the need to support young farmers and improve their ability to participate meaningfully in agriculture.
By providing access to tractors through a structured repayment arrangement, we aim to help farmers strengthen their operations and increase production,” EmpowerBank said.
The delivery of the 40 tractors represents a total equipment value of US$1.04 million, based on the stated unit price.
The financing facility is expected to assist farmers who may struggle to purchase agricultural machinery outright, giving them an opportunity to acquire equipment while spreading payments over three years.
