Tuesday, 09 November 2021 16:00

BANDESAL provides credit lines for the agricultural sector

Written by Evelyn Alas

The Banco de Desarrollo de El Salvador (BANDESAL), is managing lines of credit for agriculture with the objective of offering financing to increase productivity and employment generation in the sector.

This type of financing seeks to have a positive impact on environmental conservation.

Interest rates depend on the purpose, term, and risk of the financing, and guarantees must be subject to credit risk assessment and as required by BANDESAL.

For infrastructure construction loans, the maximum term is up to 10 years with a grace period of up to 2 years.

For the purchase of real estate, they have a maximum term of up to 15 years and the maximum grace period will depend on the productive cycle of the crop.

Sowing or replanting of permanent crops has a maximum term of up to 8 years with a grace period of up to 4 years.

For the purchase of machinery and equipment (irrigation system, among others), they have a maximum term of up to 8 years and the grace period will depend on the productive cycle of the crop.

In addition, for the purchase of cattle and livestock, it includes dairy cows, pregnant or about to produce milk. It also includes dual-purpose cattle that give milk and meat with a maximum term of up to 5 years, with a grace period of 1 year.

For cattle fattening and meat production, it has a maximum term of up to 15 months with no grace period.

For the planting of pastures and fodder crops, it has a maximum term of 15 months with no grace period.

For the purchase of fattening and breeding swine, the maximum term is 18 months without grace period.