Indo Zambia Bank introduces Dairy Finance Schemes to support Smallholder Farmers

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Indo Zambia Bank has launched two new initiatives the Indo Dairy Production Finance Scheme and the Indo Dairy Development Finance Scheme aimed at boosting milk production and dairy farm development among smallholder farmers across Zambia.

Speaking at the launch, Indo Zambia Bank Managing Director, Brajesh Kumar, said the schemes are designed to empower dairy farmers with affordable and accessible financial products, further demonstrating the Bank's commitment to the agricultural sector.

Under the Indo Dairy Production Finance Scheme, the Bank will provide short-term financing to cover essential operational costs such as animal feeding and veterinary care.
Key features of the scheme include:

Purpose: Working capital for operational and input costs.

Eligibility: Dairy Association of Zambia members in good standing with at least two years' experience and a minimum of two cows tied to a reputable off-taker.

Loan Nature: Overdraft or Working Capital Term Loan.

Amount: K6,000 per cow per month, adjustable with inflation and input costs.

Repayment: 12 months.

Interest: Concessional rates.

Security: Charge over the cows (biological assets) and assignment of receivables.

Mr. Kumar explained that this scheme is tailored to support dairy farmers in sustaining and enhancing milk production capacity to meet growing market demands.

The Indo Dairy Development Finance Scheme, on the other hand, focuses on supporting the expansion of dairy farms.
Salient features include:

Purpose: Farm development, purchase of cows, and acquisition of transport vehicles.

Eligibility: Dairy Association of Zambia members meeting the above criteria.

Loan Nature: Term Loan.

Amount: Up to K84,000 per unit/asset.

Repayment: Up to 36 months.

Interest: Concessional rates.

Security: Charge over biological assets and financed assets, with assignment of receivables.

“These two products are now available across our 42 branches nationwide," said Mr. Kumar. "They are part of our broader strategy to enhance agricultural productivity and economic well-being."

In addition to the dairy-focused products, Mr. Kumar also highlighted Indo Zambia Bank’s support under the Sustainable Agricultural Financing Facility (SAFF), through which the bank has processed 3,225 SAFF crop loans and disbursed a total of K263.25 million as of March 2025.

The Bank has further introduced two key components under the SAFF initiative:

1. Farm Mechanization Financing (FMF)

Purpose: Purchase of mechanized equipment for increased farm productivity.

Eligibility: Farmers recommended by the Ministry of Agriculture District Agriculture Coordinating Officer (DACO).

Loan Amount: Up to K500,000.

Repayment: Up to 36 months.

Security: Assets financed and biological assets.

2. Small Scale Irrigation Financing (SIF)

Purpose: Purchase of water-efficient and renewable energy-powered irrigation systems.

Eligibility: Farmers endorsed by DACO.

Loan Amount: Up to K500,000.

Repayment: Up to 36 months.

Security: Similar to FMF.

Mr. Kumar has stressed that both FMF and SIF are crucial in supporting farmers to modernize and mitigate risks associated with climate change and water scarcity.

“We are determined to play a critical role in Zambia’s agricultural transformation. With the support mechanisms we are putting in place, we are optimistic about seeing real change in the livelihoods of our farmers,” Mr. Kumar said.

Ends.…….



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