THE Sugar Cane Growers Fund has cut its lending interest rate to 3.95 per cent as it strengthens its financial services and reduces the cost of borrowing for sugarcane growers.
SCGF chairman Marika Luveniyali said the reduction was achieved without government subsidy or funding, making the Fund one of the most affordable lenders available to growers.
The announcement was made at the launch of the SCGF Document Management System, SCGF Chatbox and Gender Equality, Disability and Social Inclusion Framework in Lautoka last Thursday.
Mr Luveniyali said the interest-rate reduction was part of a broader push to improve growers’ access to affordable finance and strengthen their financial security.
The Fund has also reduced fees and charges associated with accessing finance, including a 50 per cent reduction in probate fees.
Its financial protection measures include TISA Mortgage Protection Insurance, which Mr Luveniyali said had settled the outstanding loans of 15 growers during the past 12 months.
The Fund has also partnered with Sun Insurance to provide general house insurance, protecting growers’ homes and assets against unforeseen events and natural disasters.
He said lower equity requirements and more flexible lending policies had also been introduced, with a particular focus on improving access to finance for young people and women.
A savings scheme has been established to encourage growers to build savings and prepare for future investments and unexpected financial pressures.
“These are services that our growers have been deprived of for far too long,” Mr Luveniyali said.
However, he said the SCGF’s ability to directly provide some services remained restricted by the SCGF Act in its current form.
The Fund had, therefore, turned to strategic partnerships with third parties to expand the services available to growers.
“We have had to leverage strategic partnerships with third parties not because we lack the capacity or ambition, but because we remain committed to finding solutions that are in the best interests of our growers,” he said.
Mr Luveniyali also acknowledged the Asian Development Bank for its assistance in reviewing the SCGF’s strategic plan.
