PRODUCT PRESENTATION 31 AUGUST 2010

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. Pre-requisites (contd) 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)/ NGO’s etc • Involvement within structures of local Municipality with regard to possible projects (ie IDP of Municipality)

9. Pre-requisites (contd) 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. • 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 spouse’s 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 interest’s 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 applicant’s 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