Over 200 farmers benefiting from Demerara Bank’s Farmers Credit Line initiative

Less than two months after Demerara Bank partnered with the Guyana Government to launch its Farmers Credit Line programme, some 206 farmers are already benefiting from financial assistance provided by the bank.
In May, Demerara Bank launched the Farmers Credit Line that provides much-needed financing to farmers, mostly those along the coast. The loan ranges from $1 million to $1.5 million with a low interest rate and does not require any collateral from applicants.

In a recent interview with Guyana Times, the Bank’s Chief Executive Officer (CEO), Parvinchandra Dave, disclosed that since rolling out the initiative, 206 farmers have benefited from some $250 million in financing.
“The base feature of this advance is it’s an overdraft. It’s a credit card loan. They can use their credit card at any time. Once you get a loan of $1.5 million, not necessarily you will withdraw [the entire] $1.5 million. But the facility is available in your account so you can withdraw $200,000 or $300,000, deposit it back then withdraw and repeat again,” he explained.
According to Demerara Bank’s General Manager, Dowlat Parbhu, the amount given to each farmer is specific to their needs but the facility is a maximum of $1.5 million. This credit line carries an interest rate of 6.5 per cent.
Parbhu explained that the interest is calculated only on what is used by each client.
“And the interest on that facility, on a six-month basis, works out to about $32,000 for farmers, which is basically quarter of an acre of cultivation to repay the interest. And they get it back immediately because it’s revolving. At the end of the crop, they repay it [and then get back the full credit line sum in their account],” the General Manager noted.

He further disclosed that the farmers currently benefiting from the programme hail from the Mahaica area, especially Cane Grove, East Coast Demerara; West Coast and Corentyne Coast Berbice, and in Essequibo. These are primarily small to medium farmers with a blend of crops and cattle rearing.
“They are mostly small farmers – cash crops and so on… because most of the farmers who plant are a blend of rice, cattle and small farming,” Parbhu said.
At the programme launch in May, President Dr Irfaan Ali had lauded the initiative, saying that it will play an important role in aiding farmers to increase and sustain their productivity, which in turn will contribute to the country’s, as well as Caribbean region’s food security initiative.
In fact, in order to boost Guyana’s production to combat the looming global food crisis, the Head of State last month lobbied the Demerara Bank to extend its Farmers Credit Line to small farmers in Region Seven (Cuyuni-Mazaruni).
This was announced by President Dr Irfaan Ali on Wednesday during an outreach exercise in Bartica.
After hearing pleas of farmers and hinterland village leaders during an outreach exercise in the region for assistance to venture into or expand their agricultural programmes, President Ali reached out to the bank on the spot and was able to secure a commitment from the bank to provide financing to Cuyuni-Mazaruni farmers.
“The people from Demerara Bank, they said to me they’re willing to bring the small agricultural loan – which I think is $1.5 million – to this region, to your communities. So, I’m going to have a special programme for farmers,” the President stated.
As such, he had urged farmers, especially single parents, in the region to mobilise and apply for this loan so that they too can participate in the agriculture drive and food security initiatives. Moreover, the President also encouraged Indigenous Village Councils to come up projects not only to get financing from the bank but also support from Government.
Last week, Demerara Bank held a sod-turning ceremony for a new branch at Leonora, West Coast Demerara, and during his address there, President Ali said Government is presently examining ways to work with the local banking sector to create more opportunities for Guyana’s ever-evolving economy, particularly for small businesses.
He noted that creating “innovative ways” were essential for micro-enterprises, which do not possess the type of collateral or cash outlay to benefit from the opportunities available.
“We have to have a discussion on the apportionment of that risk and how we can minimise or remove the collateral requirement and take the contract at face value, and then work out a mechanism through which a contract at face value is used to support those business operations.” (G8)