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Frequently Asked Questions(FAQs).

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

1)	Is there a limit that can be borrowed?

ADB has no lending limits. The amount you borrow depends on your project needs and 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?

1) ADB’s normal credit requirements will apply including the following:

a) Citizenship (i.e. ID card, passport and drivers permit)

b) Company registration in Trinidad and Tobago (if applicable)

c) Land Tenure (i.e. deed or lease agreement and rent receipts)

d) Address

e) Your contribution to project cost

f) Your contribution to the collateral needed

g) Marketing arrangements

2) Invoices or quotations for items to be purchased

3) Farmers/Fisherman’s Registration card

4) Statutory approvals (if applicable)

5) Additionally you should be able to answer the following key questions when seeking to obtain a loan:

a) Why do you need this money?

b) How much do you need (vs. want)?

c) How exactly will you use this money?

d) How exactly will you use this money?

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

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 proposals and adequacy of start up capital, and helps you pin point and solve problems. A business plan is advisable particularly for large capital intensive projects.

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

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

5)	What is the rate of interest?

ADB’s effective interest rate ranges between 3% and 6% (add-on Bank rate).

6)	What is amortization?

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.

7)	What is the difference between contribution and collateral?

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 (eg. property, equipment/ vehicles, liquid assets & guarantees).

8)	Does the ADB give technical advice?

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 (eg .strategic alliances with NAMDEVCO, MALMR Extension Services or Youth Window Loan technical advisors ensure we ‘have your back’).

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

Statutory approvals such as these are required by law for various types of projects to ensure compliance with guidelines to safeguard the environment, the health and well being of persons /projects in close proximity to your project and to regulate types and scale of development in different areas in line with national plans, and according to the availability of amenities and natural resources. They help safe guard your project and livelihood.

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

ADB loans encourage agri-business and agri-entrepreneurship towards attainment of the national goals of Food and Nutrition Security, by our willingness to lend and take the developmental risk inherently 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 or offer.

11)	If I have to pay life insurance why do I still have to provide collateral for the loan?

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.

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

ADB facilitates cheque disbursements via the principle of ‘Supervised Credit’ whereby your loan is disbursed in tranches based on an implementation schedule and disbursement plan agreed upon with the borrower. Third party cheques are issued as invoiced for capital items or significant items being purchased (eg. Equipment, vehicles, inputs, land etc), to ensure optimal use of funds and implementation of the project in accordance with the loan agreement.

13)	Why doesn’t the ADB compensate farmers or waive loan payments for clients, who suffer damages due to natural causes i.e. floods etc.

ADB is mandated to facilitate the finance of agri-business projects requiring project start-up, rehabilitation or expansion. While assessment of compensation and payment for losses due to natural disaster do not fall under ADB’s purviews, we cater for the nature of the sector and its inherent risks by providing Re-financing, and payment Re-Structuring services, as well as Life insurance for all loans.

14)	Why doesn’t the ADB compensate farmers or waive loan payments for clients, who suffer damages due to natural causes i.e. floods etc.

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

16)	When is my next payment date?

ADB loan payments are due on the 30th day of each month .or on the last working day before the 30th where the 30th falls on a weekend or on a holiday.

17)	What is my balance?

Upon your enquiry in person at any Branch Office your friendly Branch staff will inform you of your balance or you may log on to our confidential web banking site and check your balance on-line.

18)	Am I in arrears?

ADB may inform you in writing or upon your enquiry in person at any Branch Office your friendly Branch 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 Branches nationwide or on-line.

19)	When was my last payment?

Should you not have access to your receipts you may enquire in person at any Branch Office where your friendly Branch staff will inform you of your last payment date and amounte or you may log on to our confidential web banking site and check your payments on-line.

20)	Who is my officer?

Your friendly Branch 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.

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

Yes early repayments are possible and can be discussed with your personal ADB Officer.

22)	Can I cash in my ADB shares?

Yes early repayments are possible and can be discussed with your personal ADB Officer.