Companies awarded tenders for construction projects that are funded with capital from the Ministry of Livestock, Fisheries and Rural Development (MLFRD) will now be able to apply for loans of up to 33 percent of the value of the project from the Rural Development Bank.
The firms will be able to secure loans at 12 percent per year with relevant departments to act as guarantors, following an application process, the bank said.
The Rural Development Bank (RDB) is currently involved in scrutinising several applications; however, they declined to divulge the number of businesses currently involved in the process.
The companies awarded the tenders are required to deposit a guarantee based on the type of project and complete 30 percent of the project before the bank will provide loans to facilitate the process.
This is the first time the Rural Development Bank has issued these sort of loans and has invited enquiries from any interested parties.