The Land Bank of South Africa is a specialist agricultural bank, wholly owned by the Government, and is a key financial player in agriculture. It is guided by a government mandate to provide financial services to the commercial farming sector and to agri-business, and to make available certain financial products which would facilitate access to finance by new entrants to agriculture from historically disadvantaged backgrounds.

The Land Bank offers a broad range of loans for all financial needs like buying land, equipment and working capital for agricultural projects.

Long-Term Mortgage:

Long term mortgage loans are fixed instalment loans for capital expenditure. These loans can be used for the purchase of land, the purchase and installation of machinery and equipment, fixed asset improvements, water project schemes and other agriculture-related capital expenditure.

Security for such a loan from Land Bank may consist of:

  • Mortgage bonds over fixed and movable assets;

  • Covering bonds over fixed and movable assets;

  • Cession of debtors;

  • Cession of unpaid share capital (co-operatives);

  • Cession over insurance policies;

  • Suretyship; and

  • Medium-term loans in the form of cash credit accounts. These loans are often used for supplementing working capital.

Security in Favour of Land Bank May Consist of:

  • Covering bonds over fixed and movable assets;

  • Notarial bonds over movable assets;

  • Cession of debtors;

  • Suretyship;

  • Cession over Insurance policies; and

  • Cession of unpaid share capital (co-operatives).

Short-Term Loans:

Short-term loans are tailored to meet important financing needs in the agricultural cycle including the provision of advances – against crop intakes, production requirements, production credit and other related services that includes the handling, manufacturing, packing, processing, storage, transport and/or marketing of agricultural products.

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  • Interest rates are quoted nominal annual compounded monthly (NACM).

  • Interest rates are not fixed over the term of the loan and can be adjusted from time to time based on fluctuations in the money and capital markets.

  • There are no fixed terms of repayment. Draw-downs and repayments are regulated by the value of assets (stock and debtors) financed.

  • There are no transaction costs.


Call deposit accounts are available to corporate clients only. Typically this facility is used in the following ways:

  • Deposits provide unlimited withdrawal opportunities;

  • No minimum deposit lever; and

  • Payment upon notification.


The Land Bank issues guarantees for the purpose of guaranteeing the meeting and fulfilment of corporate clients’ obligations in connection with their agriculture related activities. Typically, companies use this service for agriculture-related activities and insurance premium guarantees.

Establishment Loans:

Land Bank provides establishment loans to farmers for establishing perennial crops. These loans are typically used for establishing sugar cane plantations, citrus and deciduous fruit orchards, timber plantations and vineyards for table and wine grapes. This loan may be accessed by individual farmers, groups or any legal entity from large-scale commercial farms to small-scale farms.

Large Livestock:

Land Bank now offers its clients an opportunity to purchase livestock using the latest available animal identification technology. This product is aimed at clients who have established herds of stud animals, dairy cows, or are involved in beef production, and who wish to expand their herds, without offering land for security purposes. It can also be used to finance high-value game and horses.

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This is a medium term loan where the animals bought, and the client’s existing animals form the most important security – the animals belong to the Bank until the loan has been repaid.

Instalment Finance:

Instalment Sale Finance is a type of medium-term loan where the goods that you buy act as the main security for the loan: the goods belong to the Bank until the loan is paid in full. It enables all farmers, especially those with limited assets to grow their businesses. This finance is usually used for farming equipment, implements, vehicles and Livestock.

This finance package is available for periods between 3 and 10 years, depending on the expected length of life of the asset. An individual farmer or a group or any legal entity may access this type of loan.

Special Mortgage Loan:

The special mortgage loan is aimed at South Africans who have the potential to become successful farmer but were previously denied the rights to buy land.

Currently the special interest rate is set at 10%. This rate is fixed for 24 months with intention of keeping it as low as prevailing market conditions allow. The maximum loan at the special interest rate is R500 000. If you borrow more than R500 000, the interest on the amount over R500 000 will be charged at the standard rate for long-term loans. The loan term is up to 25 years.