Questions:

1. Is there a limit that can be borrowed?
2. What are the requirements for obtaining a loan?
3. Key questions you should be able to answer when seeking to obtain a loan:
4. Do I need a business plan to borrow from the ADB?
5. Can I get a moratorium or grace period on my loan?
6. What is the rate of interest?
7. What is amortization?
8. What is the difference between contribution and collateral?
9. Does the ADB give technical advice?
10. Why are County Medical Officer of Health (CMOH), EMA and Town and Country Planning approvals required if the project is on agricultural land?
11. Why is it necessary to provide collateral or security for loans, if the ADB is in existence to assist farmers?
12. Why is it necessary to provide life insurance if I provide collateral for the loan?
13. Why can't cheques be made payable to the person taking the loan and not a third party?
14. Why do customers have to pay to release their security?
15. When is my next payment date?
16. What is my balance?
17. Am I in arrears?
18. When was my last payment?
19. Who is my officer?
20. Can I make a payment on my account even if it is not due?
21. Can I cash in my ADB shares?

Questions and Answers:

1) Is there a limit that can be borrowed?

• Answer:
• ADB has no lending limits. The amount you borrow depends on your project needs. How much is offered is limited by the viability of your business, your capacity to repay and the collateral provided.

2)What are the requirements for obtaining a loan?

• Answer:
• ADB's normal credit requirements will apply including the following:
• Proof of:
• Citizenship (i.e. ID card, passport and drivers permit)
• Address
• Company registration in Trinidad and Tobago (if applicable)
• Farmers/Fisherman's Identification card
• Invoices or quotations for items to be purchased
• Marketing arrangements
• Statutory approvals (if applicable)
• Other negotiable requirements:
• your contribution to project cost and collateral
• land tenure arrangements (i.e. deed or lease agreement and rent receipts)

3) Key questions you should be able to answer when seeking to obtain a loan:

• Answer:
• Why do you need this money?
• How much do you need (vs. want)?
• How exactly will you use this money?
• When and How will you repay this money?

4) Do I need a business plan to borrow from the ADB?

• Answer:
• No a business plan is not generally needed when requesting an ADB loan. A business plan however helps keep you focused, determines the feasibility of your proposal, adequacy of start-up capital, and helps you pin point and solve problems. A business plan is advisable particularly for large capital intensive projects.

5) Can I get a moratorium or grace period on my loan?

• Answer:
• Yes a moratorium or grace period is granted as needed to facilitate proper project establishment. During the moratorium period only interest is repaid on sums drawn down.

6) What is the rate of interest?

• Answer:
• ADB's effective interest rate ranges between 3% and 5%.

7) What is amortization?

• Answer:
• ADB calculates its rate of interest on the reducing principal loan balance so that it works out cheaper for you. No rebate is due as you only pay the exact amount due at the time of repayment which allows you to enjoy savings on your total loan repayment.

8) What is the difference between contribution and collateral?

• Answer:
• Contribution is the amount of 'down payment' you put out for the loan or the cash contributions you put into the business. It can also include 'in kind' contributions (e.g. your labour). Your contribution establishes your level of commitment to your own project success. ADB's normal requirement is a 20% contribution from you the borrower. Collateral comprises tangible item(s) offered by you to secure the actual amount you borrow (e.g. property, equipment/ vehicles, liquid assets &/ or guarantees).

9) Does the ADB give technical advice?

• Answer:
• ADB offers technical advice to reduce your risk of project failure primarily through alliances with other stakeholders or experts for technical support, particularly on specific loan packages (e.g. .strategic alliances with NAMDEVCO, MALMR Extension Services or Youth Window Loan technical advisors ensure we 'have your back').

10) Why are County Medical Officer of Health (CMOH), EMA and Town and Country Planning approvals required if the project is on agricultural land?

• Answer:
• Statutory approvals such as these are required by law for various types of projects to: ensure compliance with legal guidelines to safeguard the environment, and regulate types and scale of development in line with national plans and the availability of amenities and natural resources. help safe guard not only your project and livelihood, but the health and well being of persons and projects in close proximity to your project, as well.

11) Why is it necessary to provide collateral or security for loans, if the ADB is in existence to assist farmers?

• Answer:
• ADB loans encourage agri-business and agri-entrepreneurship towards attainment of the national goals of Food and Nutrition Security.We arer willing to lend and take the developmental risk associated with agricultural projects. Collateral provides fall back security for the lender if the business fails or you default on payments as signed to in your loan agreement.

12) Why is it necessary to provide life insurance if I provide collateral for the loan?

• Answer:
• A Life insurance coverage provides peace of mind and financial security in the event of unforeseen circumstances involving untimely death. It does not generally provide a fall back position for the lender if the business should fail or you default on payment as signed to in your loan agreement.

13) Why can’t cheques be made payable to the person taking the loan and not a third party?

• Answer:
• ADB facilitates cheque disbursements via the principle of 'Supervised Credit'. Loans are disbursed in tranches based on a project implementation schedule and disbursement plan agreed upon with the borrower. Third party cheques are issued according to invoicing for capital items or significant items being purchased (e.g. equipment, vehicles, inputs, land etc. This ensures optimal use of funds and implementation of the project in accordance with the loan agreement.

14) Why do customers have to pay to release their security?

• Answer:
• Upon loan repayment or negotiation of a release or change in security, release fees are applicable depending on the type of collateral that you offered. Fees cover administrative and legal costs required by the Bank or attorneys to de-register different types of securities. These costs need only be paid if /when you require access to the item(s) of security.

15) When is my next payment date?

• Answer:
• ADB loan payments are due on the 31st day of each month .or on the last working day before the 31st where the 31st falls on a weekend or on a holiday.

16) What is my balance?

• Answer:
• Upon your enquiry in person at any Customer Service Center your friendly staff will inform you of your balance, or you may log on to our confidential web banking site and check your balance on-line.

17)Am I in arrears?

• Answer:
• ADB may contact you, inform you in writing or upon your enquiry in person at any Customer Service Center, our friendly staff will inform you of any arrears. You may also log on to our confidential web banking site and check for arrears on-line. Payments to clear arrears can be made at any of our convenient Centres nationwide or on-line.

18) When was my last payment?

• Answer:
• Should you not have access to your receipts you may enquire in person at any Customer Service Centre where our friendly staff will inform you of your last payment date and amount, or you may log on to our confidential web banking site and check your payments on-line.

19) Who is my officer?

• Answer:
• Our friendly staff will inform you of the name of your personal Loan Officer at loan application stage, or of your Monitoring Officer to facilitate periodic site visits during the life of your loan.

20) Can I make a payment on my account even if it is not due?

• Answer:
• Yes, early repayments are possible and can be discussed with your personal ADB Officer.

21) Can I cash in my ADB shares?

• Answer:
• Yes, persons still in possession of ADB shareholding are encouraged to take advantage of the offer to monetize their shares. Shareholders and executors for deceased shareholders are encouraged to contact the Office of the Corporate Secretary ADB or the nearest ADB Customer Service Centre for assistance in accessing this benefit.