Loan Products

TAFF has designed and implemented different loan products. They include:

Below please find a short overview on the basic features of each product:

Individual Farm Loan:

  • used for bigger farms irrespective of the crop type
  • disbursed in tranches and repaid in installments according to the cash flow
  • loan sizes range from USD 500 to USD 100,000

Mutual Group Lending

  • target beneficiaries are mostly small farms organized as individual entities
  • members of the group (3 to 10) are jointly and separately liable for the credits granted to the other members
  • amount of credit to each member is max. USD 5,000, in sum for the group no more than USD 50,000)
  • for a loan amount bigger than USD 50,000 collateral is required

Institutional Group Lending

  • target beneficiaries are small farms organized as individual entities
  • the group (can be more than 10) is a legal entity (association or a cooperative) entitled by Tajik law and its statutes to provide a guarantee to its members
  • entity sets up a guarantee reserve fund which is an interest bearing account. It is an asset of the entity used firstly for the purpose of providing liquid collateral to the Bank in case a member of the entity defaults
  • loan amount is max. USD 5,000 for the first loan per member; 10,000 for the following loans

Value Chain Finance

  • involves agreements between financing banks, farms and agro business processor/international commodity trader, farms and cotton buyers
  • the bank provides a loan according to production cycle
  • agro business processor/international commodity trader working under procurement contracts with farms provides the financing bank with its corporate guarantee/or the off-take contract between farmers and commodity traders can be used as collateral
  • the farmer agrees to technical assistance provided by Extension Service Providers
  • production is sold to the agro business processor/international trader under fair conditions with the farmer receiving his money timely
  • this is partially being financed by other donors

All products described in this section are constantly revised and improved according to the new developments and market conditions.

Our Partners

The Phase II of TAFF is financed by the EU
Funded by donors of the EBRD's multi-donor Early Transition Countries Fund including Canada, Finland, Germany, Ireland, Japan, Korea, Luxembourg, the Netherlands, Norway, Spain, Sweden, Switzerland, Taipei China, the United Kingdom and the US/EBRD SME Financing Facility initiative.
Technical Assistance provided by Frankfurt School of Finance & Management