Development Fund loan to finance greenhouses

If you want to build a greenhouse, to take advantage of its many advantages and great financial return, but you are facing a problem in covering the costs required for the construction process.. Here is this article, through which we will learn about a loan

strong>Agricultural Development Fund dedicated to establishing greenhouses, and ways to obtain it..

What is Development Fund loan to finance greenhouses?

The Development Fund of the Saudi Ministry of Environment, Water and Agriculture provides financing loans of up to $100 million.

These funds aim to raise the efficiency of agricultural production in the Kingdom and contribute to achieving food security.

These loans also include loans directed to small farmers, persons and companies wishing to establish developmental agricultural projects, targeted by the Kingdom’s agricultural policy.

Among those projects are; Poultry production projects, dates manufacturing, construction of greenhouses..etc.

Concerning greenhouse projects; The Agricultural Development Fund seeks to finance all the operational costs of establishing these houses, whether they are air-conditioned or not.

Other loans provided by the Agricultural Development Fund

Finance and Payment Method

As for the method of financing the Agricultural Development Fund for greenhouses; The value of the financing depends on the value of the loan that the project will need.

Accordingly, projects whose cost will be 3 million riyals or less, will receive financing up to 75%.

If the cost of the project exceeds 3 million riyals; The project owner will receive 75% financing for the first three million, and 50% for the rest of the amount.

The fund allows for a payment period of up to ten full years, and the beneficiary gets a grace period, for two years from the date of signing the contract, after which the process of calculating and paying the installments begins.

Lending Terms

However, the Fund sets a set of conditions and papers required to be submitted, whether for lending to individuals, companies or associations, as follows:

Conditions for lending specialized projects to individuals

• Provide a certificate issued by the Ministry of Environment, Water and Agriculture, or one of the licensed laboratories, proving the validity of water and production quantities.
• An electronic copy of the project’s economic feasibility study, provided that it includes the financial and marketing studies for it.
• Submit a ministerial license, or a permit from the municipality to set up the project.
• In addition to the agricultural registry, issued by the Ministry of Environment.
• In case the beneficiary is a Saudi national, a copy of his national identity card must be submitted.
• The borrower must have completed twenty-one years of age.
• Submission of complete engineering plans for the project, and a survey survey from one of the approved engineering offices, including the coordinates of the project land.
• If the borrower had previous dealings with the fund, he must pay all the due installments, before applying for the loan.
• Provide the necessary guarantees, provided that the fund does not have any dues from the owners of those guarantees.
• The customer’s bank account (for the last six months), and his property and real estate.
• The customer’s signature on an acknowledgment that he agrees to inquire about his credit report by The Saudi Credit Bureau.
• And a similar acknowledgment that he agreed to inquire about his credit history by the Saudi Credit Bureau.
• Any document proving his possession of the project land, whether by ownership or lease.

Corporate Project Lending Terms

• Provide a certificate of water quality and production quantities.
• The company’s articles of incorporation.
• Commercial Register.
• The last 3 annual budgets of the company and its projects.
• A list of the names of the company’s board of directors.
• A letter signed by the company’s board of directors requesting the loan, and authorizing a person on his behalf to conclude the contract.
• A letter from the General Authority for Zakat and Income Tax.
• A license to practice the activity, issued by the General Investment Authority.
• In case of non-Saudi partners, copies of their passports are attached .

Learn about the ingredients needed to create a greenhouse

Conditions for lending association projects

• Cooperative societies need to provide true copies of the following documents:
• Certificate of water quality and production quantities.
• The minutes of the last two meetings of the association.
• The articles of association of the two associations, their rules and bylaws.
• Certificate of association registration with the Ministry of Labor and Social Affairs.
• A statement of the association’s capital, with an explanation of its activities in the previous period.
• A letter of endorsement from the Ministry of Environment, as well as the Cooperative Societies Council.
• The last 3 budgets of the association, which are approved by an accounting office.

How to get funding?

If you want to get financing; You can visit the main center of the fund, or one of its branches..

The fund also allows its clients to communicate through the following means:

• E-mail: invs.cr@adf.gov.sa.
• Phone number: 011-2118617.
• Fax: 2935689 –011​.

In addition to Agricultural Development Fund; There are many Saudi banks that provide various financings for greenhouse projects, and other similar projects, whether for individuals, companies or other entities.