Can a farm and farm produce be used as collateral?

Yes! Farm products including crops such as coffee, teff, wheat, maize (grown, growing or to be grown), seeds and other supplies used or produced duringbfarming operations can be used as collateral

Farm Products (Livestock and Farm Animals)

Livestock like cattle, camel, sheep, goat and farm animals like poultry, fish etc. (born or unborn) and their offspring whether already owned by the borrower or to be acquired, are assets that can be used as collateral to secure loans or other credit facilities.

Movable Collateral

All tangible or intangible assets whether already owned by the borrower or to be acquired, are suitable for securing loans and other credit facilities.

Timber

Timber and timber products such as plywood and treated poles whether already owned by the borrower or to be acquired, are assets that can be used as collateral to secure loans or other credit facilities.

Inventory

Goods that are held by a person for sale or lease, goods to be provided under a contract for services, raw materials or work in progress and materials used or consumed in a business, whether existing or future, are all suitable for securing loans or other credit facilities.

Consumer Goods

Consumer goods intended to be used for personal or household purposes whether already owned by the borrower or to be acquired, can be used as collateral to secure loans or other credit facilities.

Receivables

Any right to payment of a monetary obligation can be used for securing loans or in factoring transactions. Receivables do not include any right to payment evidenced by a negotiable instrument, a right to payment of funds credited to a bank account and a right to payment under a security. However, these other rights to payment may also be used as collateral.