Purpose

Government Grant Specialised Farm Purchase Loan

Limit: Maximum $75,000.00

Eligibility

Commitment Ratio of Loan Repayment to Net Farm Income to be below 60 percent, based on an average of past 3 years’ production and/or the forecast of the current year cane production.

Equity

30 per cent of the cost or valuation whichever is lower of which, 15% to a cap of $10,000 would come from Government Grant contribution

SCGF Mortgagee Sale Farms, get 25% of the cost [or valuation whichever is lower] as equity [to cap of $10,000 per farm] or 15% of cost whichever is lower from Government and 10% [hurt or sweat equity] to be met by the applicant either cash or landed property

Interest Rate

Base rate of 6.5 percent (variable) but will range from 6 to 6.5 percent as follows:

• First farm for women (empowering women) and youth (aged up 35 years) will be charged 6%;

• Applicant acquiring SCGF problematic loan farm either through mortgagee or volunteer sale, will be charged 6%; and

• First farm for applicant (with exceptions to 1 & 2) will be changed 6.5%.

Term

Term of will be 15 years or term 7 years before expiry of the lease. However, > 50-year farm leases or freehold will have maximum of 20 years as per the current lending guidelines.

Grower has option for early repayment and or full clearance with no exit or early payment fee.

Repayment

Annualised Repayment deducted from the cane payments received from FSC. This ranges from 50 to 100% and once annual repayment is met, rest of the proceeds for the season are refunded.

Security

Mortgage over Farm Lands, Security Agreement over farm crops, Security Agreement over Farm Chattels (tractors, trucks, implements) where needed with Insurance and Personal Guarantees and Irrevocable Authorities

Requirements: [Refer to Specialized Loan Checklist ]