“Grace period” loan
“Grace period” loans are offered to agricultural businesses which do not generate sufficient income during the initial stages of their investment to make regular repayments. For this reason and for a designated portion of the loan term (e.g. 30% of the repayment period), the bank allows for instalments equal to the interest amount only. The remaining repayments are scheduled for a time when the investment is expected to result in the desired income, so that the client can enjoy the fruits of his/her labour and planning
