Long-term mortgage loans are fixed instalment loans for capital expenditure. Around the country our corporate clients are using these loans for the purchase of land, the purchase and installation of machinery and equipment, fixed asset improvements, water project schemes and other agriculture-related capital expenditure.

Security for such a loan from Land Bank may consist of: 

• Mortgage bonds over fixed and movable assets

• Covering bonds over fixed and movable assets

• Cession of debtors

• Cession of unpaid share capital (co-operatives)

• Cession over insurance policies

• Suretyship

 

Typical Use
Land Bank's corporate client use these loans for the purchase of land, the purchase and installation of machinery and equipment, fixed asset improvements, water project schemes and other agriculture-related capital expenditure.

 

Interest and costs
Interest rates and the cost of long-term mortgage loans are determined as follows:

• Interest rates are quoted nominal annual compounded monthly (NACM)

• Interest rates are not fixed and can be adjusted from time to time over the term of the loan, based on fluctuations in the money and capital markets

• There are no transaction costs.

 

Terms
The term of long-term mortgage loans and repayment are as follows:

• Term is negotiable usually between 5 and 15 years

• Repayment is either in annual or monthly instalments. Instalments can be calculated on an actuarial or "straight-line" basis.