Fiji Development Bank launches new loan package called the FDB Agriculture Family Loan Facility

The Fiji Development Bank has launched a new loan package called the FDB Agriculture Family Loan Facility which is designed for experienced Fijian farming families.

Minister for Agriculture and Rural and Maritime Development Dr Mahendra Reddy officiated at the launch of the new loan package in Labasa.

Dr Reddy says the product is designed for experienced Fijian farming families, where the loan will be offered to a family where the husband, wife and eligible child will be involved in the loan and share the skills set and responsibilities.

Dr Reddy says the existing entrepreneurs who are not able to mobilise their own savings or do not have any assets to use as a collateral to obtain loans from the banking institutions may  find it impossible to survive in a competitive industry.

He says the product is specifically designed for families who have a viable farming business on communally owned land, estate or private owned land with consent given by the land owning unit.

The Minister says with assistance through the Ministry of Agriculture grants, many Fijian families are able to start their farming business at semi‑subsistence level, but to expand farm development into semi‑commercial level for farmers without lease remains a major constraint to accessing finance.

He says the new product is targeted at customers identified as subsistence, semi‑commercial and commercial farmers with more than 10 years farming experience and established market.

The Minister says loans will be available for land development, farmhouse, and infrastructure such as farm inroads, water supply, renewable energy and irrigation to approved experienced farmers with no lease across Fiji.

For those whose loans will be approved, the Bank will deliver financial literacy and management skills training.

FDB’s Be Financially $mart booklet is designed to promote and develop entrepreneurial and business skills and capacities of farming families and Small and Micro Enterprises that will be fundamental to their full market participation, and to take advantage of new opportunities.