ARDB’s Green Loan

TARGET CUSTOMER

An individual or legal entity engaged in business activities within the agricultural value chain actors, contributing to rural economic development. These activities must adhere to Environmental and Social safeguards, aligning with the commitment to sustainable development of the national economy.

All target customers must operate local businesses or production and require capital for their business operations.

SCOPE OF LENDING

An eligible green project can be defined as any agricultural value chain actors (from upstream to downstream players) whose business activities focus on environmental impact mitigation, climate change adaptation, and new technology adoption while contributing to rural economic development. The scope covers key aspects of mitigation, adaptation, and cross-cutting areas, along with other co-benefits, including but not limited to the following areas:

Impact Areas / Contribution Outcomes
Mitigation: Any agricultural value chain actors whose business model is designed to contribute to reducing GHG emissions or enhancing carbon sinks. This includes using renewable energy sources like solar, wind, hydro, bioenergy, and biogas; improving energy efficiency; adopting low-carbon agriculture techniques; and practicing regenerative agriculture to maintain soil health, etc.
Adaptation: Any agricultural value chain actors whose business model is designed to withstand or reduce vulnerability to the current or expected impacts of climate change like, for example, extreme weather conditions. This can be achieved by, for example, planting crop varieties that are more resilient to drought, using green/net houses in production, improving water storage/ use, enhancing water irrigation systems, etc.
Cross-cutting: Any agricultural value chain actors whose business model addresses both mitigation and adaptation solutions.
Co-benefits: All financed projects are expected to contribute to sustainable development goals (SDGs) by providing one or more of the following environmental, economic, or social co-benefits:

  • Environmental Co-benefit: Projects should be screened for environmental and social risks and opportunities.
  • Gender and Social Co-benefit: Projects should promote gender responsiveness and offer social sustainability benefits, such as improvements in health and safety.
  • Economic Co-benefit: Projects should enhance economic sustainability through job creation, income enhancement, and financial inclusion.

This can be achieved by financing projects aimed at resource efficiency, environmental sustainability, climate-smart approaches, and enhancing the quality and safety of agri-food systems.

ELIGIBILITY CRITERIA

DOCUMENTATION REQUIREMENTS

  • For individual customers
  • For Entity
  • National ID, Family Book, or Residence Book (Copy)
  • Title Deed as collaterals
  • Business registration certificate (Copy) and
  • Other required documents, as necessary.

GREEN LOAN PRODUCTS

  • Working Capital
  • Investment Capital
  • Loan size : 500 to 100,000 USD
  • Interest Rate : 6% to 7.5% p.a
  • Loan Term : Up to 12 months

PAYMENT METHOD

COLLATERAL

SPECIAL CONDITIONS OF GREEN LOAN

How to apply

Please contact Agricultural and Rural Development bank nearby or via phone (098 304 057/ 023 220 810|811).