Frequently Asked Questions
Agri-activities that can be funded with ADB Loans:
- Agricultural Co-Operative Societies
- Food Crops
ADB has no lending limits. The amount you borrow depends on your project needs. How much is offered is limited by the viability of your business, your capacity to repay and the collateral provided.
ADB's normal credit requirements will apply including proof of the:
- Citizenship (i.e. ID card, passport and drivers permit)
- Company registration in Trinidad and Tobago (if applicable)
- Farmers'/Fisherman's identification card
- Invoices or quotations for items to be purchased
- Marketing arrangements
- Statutory approvals (if applicable)
- Other negotiable requirements:
- Your contribution to project cost and collateral
- Land tenure arrangements (i.e. deed or lease agreement and rent receipts)
In assessing a project for funding, ADB undertakes and appraisal of the project looking at the following:
- Project Idea
- Character of the Owner
- Viability of the Project
- Technical Feasibility
- Security/ Collateral
- Why do you need this money?
- How much do you need (vs. want)?
- How exactly will you use this money?
- When and how will you repay this money?
No. A business plan is not generally needed when requesting an ADB loan. A business plan however helps keep you focused, determines the feasibility of your proposal, adequacy of start-up capital, and helps you pinpoint and solve problems. A business plan is advisable particularly for large capital intensive projects.
Yes. A moratorium or grace period is granted as needed to facilitate proper project establishment. During the moratorium period only interest is repaid on sums drawn down.
ADB's effective interest rate ranges between 3% and 5%.
ADB calculates its rate of interest on the reducing principal loan balance so that it works out cheaper for you. No rebate is due as you only pay the exact amount due at the time of repayment which allows you to enjoy savings on your total loan repayment.
Contribution is the amount of 'down payment' you put out for the loan or the cash contributions you put into the business. It can also include 'in kind' contributions (e.g. your labour). Your contribution establishes your level of commitment to your own project success. ADB's normal requirement is a 20% contribution from you the borrower. Collateral comprises tangible item(s) offered by you to secure the actual amount you borrow (e.g. property, equipment/ vehicles, liquid assets &/ or guarantees).
ADB offers technical advice to reduce your risk of project failure primarily through alliances with other stakeholders or experts for technical support, particularly on specific loan packages (e.g. strategic alliances with NAMDEVCO, Ministry of Agriculture, Land and Fisheries Extension Services ensure we 'have your back').
Why are County Medical Officer of Health (CMOH), EMA and Town and Country Planning approvals required if the project is on agricultural land?
Statutory approvals such as these are required by law for various types of projects based on the following to:
- Ensure compliance with legal guideline to safe guard the environment.
- Regulate types and scale of development in line with national plans and the availability of amenities and natural resources.
- Help safe guard not only your project and livelihood, but the health and well being of neighboring persons and projects as well.
Why is it necessary to provide collateral or security for loans, if the ADB is in existence to assist farmers?
ADB loans encourage agri-business and agri-entrepreneurship towards attainment of the national goals of Food and Nutrition Security. We are willing to lend and take the developmental risk associated with agricultural projects. Collateral provides fall back security for the lender if the business fails or you default on payments as signed in your loan agreement.
Life Insurance coverage provides peace of mind and financial security in the event of unforeseen circumstances involving untimely death. It does not generally provide a fallback position for the lender if the business should fail or you default on payment as signed in your loan agreement.
ADB facilitates cheque disbursements via the principle of 'Supervised Credit'. Loans are disbursed in tranches based on a project implementation schedule and disbursement plan agreed upon with the borrower. Third party cheques are issued according to invoicing for capital items or significant items being purchased (e.g. equipment, vehicles, inputs, land etc). This ensures optimal use of funds and implementation of the project in accordance with the loan agreement.
Upon loan repayment, negotiation of a release or change in security, release fees are applicable depending on the type of collateral that you offered. Fees cover administrative and legal costs required by the Bank or attorneys to de-register different types of securities. These costs need only be paid if /when you require access to the item(s) of security.
ADB loan payments are due on the last working day of the month.
You may come to any of our branches where our friendly staff is here to assist you or you may log onto our confidential online banking to check your balance.
ADB may contact you via postal or telephone, or you may enquire in person at any Branch where our friendly staff will inform you of any arrears. You may also log on to our confidential web banking site and check for arrears on-line.
Payments to clear arrears can be made at any of our conveniently located Branches nationwide or on-line.
Should you not have access to your receipts you may enquire in person at any Branch, where our friendly staff will inform you of your last payment date and amount, or you may log on to check your payments on-line.
Our friendly staff will inform you of the name of your personal Loans Officer at loan application stage, or of your Monitoring Officer to facilitate periodic site visits during the life of your loan.
Yes. Early repayments are possible and can be discussed with your personal Loans Officer.
Yes. Persons still in possession of ADB shareholding are encouraged to take advantage of the offer to monetize their shares. Shareholders and executors for deceased shareholders are encouraged to contact the Office of the Corporate Secretary, ADB or the nearest ADB Branches for assistance in accessing this benefit.