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Business Start-up Loans for Eligible Youth Indulged in Agriculture

Business Start-up Loans for Eligible Youth Indulged in Agriculture
2017/01/05
Reporter: Li Zeng-Wang / Comprehensive Report.

In order to encourage young people to indulge in farming, the Council of Agriculture (COA) has initiated the project "Business Start-up Loans for Youths Getting into Farming". In the past three years, a total of about NT$ 900 million has been loaned to young farmers as a means of financial support.
According to the Bureau of Agricultural Finance (BOAF), relaxation of loan eligibility criteria has been made several times in consideration to the ardent operating funds demand of young farmers. Hence, those that are aged 18 – 45 and meet one of the following requirements can be deemed as prospective borrowers: had an internship at farms or experiences in agricultural production, graduated from agriculture-related departments, completed over 80 hours of relevant agricultural training within 5 years or have been chosen by COA in counseling projects for young farmers. At present, the annual percentage rate is 1.29%. The loan amount is NT$ 5 million, and a lending quota increase can be obtained through providing a project proposal.
BOAF further states that loan borrowers have an average age of 36, and therefore the vitality of youth can be viewed as contributing to agricultural manpower. The average loan amount is around $ 1.6 million. The loans are mostly for working capital turnover, indicating the sound and steady management of the young farmers’ businesses during the initial operating stage. In order to provide sufficient financial assistance for young farmers, BOAF frequently invites relevant government agencies to address the issues faced in the industrial and financial sectors, in hopes of providing the best financial assistance for young farmers.
Provided that young farmers are in need of financial assistance, BOAF welcomes those in need to contact the Credit Department of Farmers’ and Fishermen’s Associations within the jurisdiction of the municipalities or counties (cities) where their residences are registered, or the Agricultural Bank of Taiwan. If the borrower fails to meet the capacity requirements, the loan agency services can provide assistance by appealing to the Agricultural Credit Guarantee Fund for loan guarantees. The maximum margin loan percentage can reach 95 %. More details of the regulations for various types of agricultural project loans can be found on the BOAF website (http: // www. Boaf.gov.tw/).

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  • Date:2017-11-30