Financing a farm

Please note this is only for information. We do not finance farms or any other properties.

The notes below will address most of the questions regarding the financing of farms. Kindly address any further queries directly to the financial institutions.

Buying Commercial Farms 

On average commercial banks will give loans of between 50 – 70% on their valuation of primarily the land, but also taking into consideration some improvements.

The banks will look at certain factors before granting a loan on farms. The bank will take in account the affordability of re-payment (income of farm), financial statements and assets (security).


This refer to items such as livestock, implements etc.- all items that can be included in buying a farm as a “going concern”. These items, when separately bought, are financed by banks on short-term financing. Again the bank will consider affordability of re-payment, financial statements and assets(security).

Country Living – Getaways – Smallholdings: 

Banks will vary in ha size, looking at a serviced small holding with a homestead as a normal home loan. On average loans of 80-90% of applied amounts are granted. The same financial requirements as mentioned above will be applicable. If you are considering buying undeveloped land such as a piece of mountainous veldt, it will not qualify as an economic unit to the banks. – YOU WILL BASICALLY HAVE TO BE A CASH BUYER.


Buying a plot in a township – if you qualify the bank will give you a 60% loan.

Land Bank Financing: 

The Land bank will consider the production value of the farm taking including factors such as the market value before granting a loan to you as client.