A harvest-linked schedule: who it suits and who it does not

With a farm loan you pay only interest each month and repay the loan itself in equal parts in the months you sell. A greenhouse tomato grower might pick May and November; a beekeeper August and September.

In numbers

₼10,000 over 12 months from 15 July, 21% a year, a 1% fee. With equal payments you pay ₼931.14 a month and ₼1,173.63 in interest overall. On a schedule tied to May and November you pay ₼175 of interest in the autumn months and ₼116.67 in winter, then ₼3,508.33 in November and ₼3,450 in May. Interest comes to ₼1,516.68.

So the harvest schedule costs ₼343 more, because more of the loan stays with you for longer. In return you pay ₼117–175 instead of ₼931 in the months with no harvest.

Who it suits

• Farmers whose income falls in one or two months: vegetables, fruit, hazelnuts, honey, grain.
• Farmers with a sales contract or receipts from past seasons.

Who it does not suit

• Farmers who sell milk, eggs or meat every month: equal payments are cheaper.
• Farmers who sell little by little all year round.

If drought, hail or disease destroys the crop, tell the branch before the payment date: a loan officer sees the damage on site, we stretch the schedule by up to 6 months and charge no penalty for that time.