Agribusiness Loan Guarantees


The Agribusiness Loan Guarantee (ALG) was inherited from the previous ASPS DANIDA program to promote Agribusiness financing to SMEs, expand lending to the Agricultural Sector and exhibit additionality. The ALG is for SMEs dealing in agribusiness only and can be accessed through our Implementing partners who are Financial Institutions.

There are 3 types of Guarantees that we offer:

  • Individual

The Individual guarantee is where a Financial Institution needs to refer the loan to the Guarantor (aBi Finance) before issuance for approval.

  • Portfolio¬†

The Portfolio guarantee is where a Financial Institution does not need to refer a loan below a specified threshold (agreed upon by the FI and Guarantor) for aBi Finance approval

  • Portable

The Portable Guarantee is where aBi Finance makes a recommendation for an SME to source around for financing with the best terms and conditions from a Financial Institution of its choice.

The ALG is beneficial to the SMEs majorly because it allows them access to finance, reduces collateral requirements for them and allows expansion of lending to the perceived riskier areas in agriculture

Features

  1. Agribusiness focused Small & Medium Enterprises
  2. Maximum cover is 50% of loss of principal outstanding.
  3. Maximum Loan amount of USh500 million