To support farmer in nationwide to able to access source of fund. APB support and promote agricultural product accordance to Sustainability principle to contribute to the socio-economic development of the Lao PDR.
Target of the credit:
Loan for group is mean a group of farmer who set up a group to produce agricultural product with equally responsibility over the loan on voluntary basis to borrow from APB.
Types of Loans are classified in to 3 categories as follow:
1. Short Term Loans:
The objective of this type of loan is to allow the farmer to make a loan for duration of 12 months or one year. Objective of this loan is to contribute to the agricultural production and animal feeding in accordance with season, such as rice farming, all type of vegetable farm, animal feeding and agricultural tools, costs of land preparation, seeds, fertilizers and labor hiring. Maximum credit line for this type of loan is 20,000,000 (twenty million) LAK for group member 1 people per family.
2. Medium Term Loans:
Medium term loans are intended for farmer with the term of less than 60 months or 5 years. This type of loan is mainly for investments in agricultural assets that can be used for more long term, for example loans for investment in agricultural like fish pond, fruit farming, big animal farming or livestock, investment in agricultural land reclamation or improvement with maximum credit line of 30,000,000 (thirty million) LAK group member 1 people per family.
3. Long Term Loans:
: Long term loans are intended for farmer with the term of more than 60 months or 5 years. This type of loan is intended for long term investments such as Industrial plantation, livestock and etc. with maximum credit line of 30,000,000 (thirty million) LAK group member 1 people per family.
Loan Security Requirements:
Farmer clients in the same group obligate themselves in joint liability agreement for theirloan repayments which verification from the head of the village. Should one of the group member cannot repay the loan principal and interest to the Bank, all other member must repay for him.
Condition of a group loan:
Each group will comprise of member from 3-7 people, group member must nominate 2 people to be group head of group and deputy head of group.
Nationality must be Lao.
Have national ID card and Household Registration Book as required by law.
Have a good health.
Fully legal responsibility (age more than 18 years and not A mental disorder).
Considered as lack of fund.
Work in agricultural and handicraft sector or any service related to agricultural.
Honest, diligent, patient and live life economically.
Not a gambling, alcoholic, drug or in the law enforcement period.
Not have an outstanding loan in bank and financial institute orany other informal debt.
Loan application written by customer.
Application to be group member
Certification of residence (head of the group and member) with 3x4 photo.
A copy of Household Registration Book.