Medeem, a land rights documentation company has signed a memorandum of understanding – MOU with AB bank to enable small and medium enterprise-SMEs access loans that will assist in developing their agriculture business.
Speaking during the signing in ceremony, AB Bank Chief Credit Officer Nurullo Mashrabov said the Bank is targeting vulnerable people in the country who finds it difficult to access a loan from a bank due to lack of collateral.
He says the bank will be working with Medeem in identifying some of its clients who have the potential to excel in the agriculture business but do not have capital to start their business. He stated that many vulnerable people in communities do not have legal land documentation from the authority due to geographical locality that makes it difficult for them to have access to loan financing from the Banks.
“Most people living in rural areas have the potential to excel in the agriculture sector but do not have access to financing due to lack of collateral that qualifies one to access a loan from a bank. What we are trying to do is assist farmers and SMEs who have traditional land and are registered with Medeem have access to financing which will enable them develop the land,” he said.
And Medeem Business Development Manager Musenge Nsakilwa said her organization which deals in assisting people living on traditional land acquire documentation is delighted to have signed the MoU with AB bank that will enable their clients not only have legal documents to the land they occupy but also have access to financing that will help boost their agriculture businesses.
She said the bank will now be able to recognize their clients as potential illegible borrowers for a loan of that will help them activate the land they occupy. “We are partnering with AB Bank in ensuring that our clients who have the potential to make progress in the agriculture sector have access to financing without restrictions.
We will make recommendations to the bank on potential clients who we feel can pay back a loan if given one. The bank will also do its own investigation just to ensure that a client we recommend meets the loan requirements set by the bank,” she said.
