1. PRODUCT PRESENTATION 31 AUGUST 2010 LAND BANK

2. 133 Church Street Pietermaritzburg Tel No 033 – 845 9600 Fax No 033 – 345 8317 www.landbank.co.za

3. The Land Bank The Land Bank is an Agricultural Development Bank that provides Financial services to a diverse range of clients in the agricultural sector only.

4. AREAS OF FOCUS To provide finance to all agricultural economic and agri-business sectors. Meeting the needs of resources for farmers and rural poor. Contributing to rural development aimed at providing stability.

5. Pre-requisites 1.Land Persons/groups who have valid access to farming land in their own name ie: Own property (registered Title Deed) Leased land (valid lease agreement) Tribal Land (valid agreement with Tribal Authority and/or Ingonyama Trust Board).

6. Pre-requisites (cont.) 2.Production Facilities Persons who own or who have legitimate access to production means (ie. tractors and implements)

7. Pre-requisites (contd) 3.Experience Courses attended Prior or current work experience / knowledge in a related field. Management ability to make business/venture a success (records of current and/or previous enterprises)

8. 4.Mentorship In the event of purchase of land – commitment from the seller or a suitable person to mentor for a certain period Assistance from established farmers in the area Extension services from the Dept of Agriculture / Industry specialists (ie.Canegrowers / Sappi etc)/ NGOs etc Involvement within structures of local Municipality with regard to possible projects (ie IDP of Municipality) Pre-requisites (contd)

9. 5.Credit Worthiness Application must be agriculturally justified Must be a positive repayment ability Must have a good credit history No write off of debts or judgments reflected on Credit Bureau Previous credit history with Land Bank if applicable

10. PRODUCT RANGE Long-Term Mortgage Loans For any agricultural related purpose. Well established commercial farmers who have proven track records and credit history and own or wish to purchase fixed agricultural or agri-business property.

11. PRODUCT RANGE (contd) Special Mortgage Loans Specifically for the first-time purchase of agricultural land by the previously disadvantaged.

12. PRODUCT RANGE (contd) Medium-Term Loans Medium term loans for the purchase of farming equipment, implements, livestock or fixed asset improvement.

13. PRODUCT RANGE (contd) Instalment Sale Finance A hire-purchase type medium term loan for the purchase of registered movables such as bakkies, trucks, tractors, registered implements and equipment cane harvesters & loaders and trailers.

14. PRODUCT RANGE (contd) Establishment Loans Medium term loans for the establishment of perennial crops such as citrus and deciduous fruits, Forestry and sugar cane.

15. PRODUCT RANGE (contd) Production Credit Loan finance for agricultural inputs such as fertiliser, seed, fuel, chemicals and pesticides, packaging, stock feed and fodder, transport costs and marketing costs. Loan finance for agricultural inputs such as fertiliser, seed, fuel, chemicals and pesticides, packaging, stock feed and fodder, transport costs and marketing costs. Also available for planting of vegetables, grain etc Also available for planting of vegetables, grain etc

16. PRODUCT RANGE (contd) Livestock Product The purchase of livestock using additional livestock as security by use of micro- chipping. Cost of micro chipping per animal : R100 + vat and a annual administration fee of R25 plus vat per animal

17. Application Requirements Application fees. Certified copies of page 1 of ID document. If married copy of spouses identity document as well as marriage certificate and certified copy of the Antenuptial Contract (if applicable). If applicant is an entity: -Company :- Memorandum & Articles of Association and Certificate of Incorporation. -Close Corporation :- Founding Statement. -Trust :- Trust Deed and Letter of Authority -Partnership :- Partnership agreement. -Co-operative: Certificate of Incorporation and Constitution

18. Requirements (contd) Business plan Projected cash flows for 2 years For purchase of loose assets: -(vehicles, tractors, implements, livestock etc) - quotation. For improvements: -(buildings, dairy & irrigation equipment etc) -quotation and/or estimate & plan for building improvements. For planting of crops: Quotations from contractor and supplier of inputs (eg co- operative)

19. Requirements (contd) Copy of Bank statements – Cheque account – 3 months Savings account – latest statement Proof is to furnished of any other income (eg, salary, pension, business interests etc). Proof of all debt (from creditor). Investments, shares, policies (surrender value) Vehicles, tractors and other registered movables ie certified copy of registration certificates. As proof of ownership. Brand Mark certificate issued by the Registrar of Animal Identification as required by Livestock Brands Act 87 of 1962.

20. Requirements (contd) Sugar cane growers- mill certificate. For applicants who farm on rural/tribal land : - Affidavit from Tribal Authority confirming right to farm the relevant land or lease agreement by Ingonyama Trust Board if applicable. - Report to be completed by an official of the Department of Agriculture. Statement and Proof of Assets and Liabilities (Assets to exceed Liabilities); FICA documentation (proof of Residential address (utility bill));

21. Thank you Questions ??? Land Bank Pietermaritzburg Office Nkululeko Cyril Zondi Cell. No. 084 677 4997 Tel. No. 033 845 9626 nczondi@landbank.co.za