₦airaland Forum

A friend is thinking of going into agribusiness.
He's offered a loan of N1.1m by his bank on the following terms
1. Tenure 35months i.e. 3years
2. Repayment: Monthly Basis
3. Repayment amount: N48,000 (on reducing balance method)
4. Total repayment 48,000 x 35 = 1,680,000
5. Banks interest: N580,000
The above holds baring any increase in interest rate

Investment options available
1. there's an oil palm plantation for lease at N1m for 10years period
It's estimated that there'll be a net cash inflow of N50,000 per month from sales of unprocessed fruits.

This implies that the business will roughly break even in 2years. While it will also pay the said loan

Option 2
Buy a land worth of same N1m and plant the oil palm.
It's expected to start fruiting in 5 years. From the 6th year, the expected cash inflow would be about N50,000 per month ( ceteris paribus)

Note: the loan is given against his salary so repayment is based on his salary and not from the business.

So folks which of the two investments can he go for. Urgent please.

Neither. When he can get better deals on 5-6 months tenure. I offer far better returns on 6 months transactions

Please kindly explain more.

DrDoc:
Neither. When he can get better deals on 5-6 months tenure. I offer far better returns on 6 months transactions

How please?[qquote author=DrDoc post=134980181]Neither. When he can get better deals on 5-6 months tenure. I offer far better returns on 6 months transactions[/quote]

Donemmy:
How please?[qquote author=DrDoc post=134980181]Neither. When he can get better deals on 5-6 months tenure. I offer far better returns on 6 months transactions

I offer 100% on 5-6 months investment through crop cultivation, not perennials like the Op


Reach me 08121650040

[Tell us more quote author=DrDoc post=134981707]


I offer 100% on 5-6 months investment through crop cultivation, not perennials like the Op


Reach me 08121650040[/quote]

I brought this topic here for open discussion and advice.
Please needless posting phone number. If you have an alternative business with good ROI kindly share here. It will definitely benefit not just the op but so many others.

DrDoc:
I offer 100% on 5-6 months investment through crop cultivation, not perennials like the Op


Reach me 08121650040

The Mods on this section should please push this for more interactions.