financial inclusion

Start date

January 2018

Duration & Stage

1 year, pilot

Funding

Funded - Pilot Phase

Objective

Provide micro-loans for financing inputs based on credit risk assessments from data collected on Golden Paddy

Partners

We are looking for partners to start the project:

  • Agronomic partner – content enhancement and advice

  • Financial service provider – credit risk modelling and loan product development

  • Bank or MFI - to provide >500 farmers with input loans at USD200-300

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Project description

In the Financial Inclusion project the objective is to provide access to provide micro-loans for financing inputs to smallholder farmers. Currently farmers have limited access to fair loans and other financial products, as banks and MFIs struggle to develop these products because of the limited insights into the credit worthiness of farmers. 


In the project the data that is collected through the  Golden Paddy platform is used to provide financial service providers with the insights that they need. Golden Paddy provides detailed crop, location, yield data. 


In Phase 1 of the project the aim is to test and calibrate a customizes credit risk model based on the data derived from Golden Paddy. The scope of the project is to get a credit score for 1000 maize farmers in Shan State, ultimately providing at least 500 loans. 


For this project we are looking to work with an agronomic partner, who can support us to enhance the content on Good Agricultural Practices that we have currently on the platform. Also, an agronomic partner can support in the development of an Q&A set up, or advice service to support farmers on specific issues through Golden Paddy. Good Agricultural Practices are crucial, as it will help the farmer to improve productivity, which ultimately leads to better assessment in the credit risk profile. 


Furthermore, financial services providers, banks and MFIs are involved in the project. Their role is to perform the credit risk modeling and based on that develop loan products. These institutions play a significant role in the project, establishing an operation model to ensure the delivery of loans to farmers. 


In a later phase of the project the aim is to include buyers and input suppliers. Buyers potentially can agree a guaranteed offtake if farmers meet quality requirements, and the input suppliers can provide the inputs at discounted costs. This also will improve the credit profile of farmers. 

Are you the partner we are looking for? Do you want more information? Get in touch with us: impact@impactterra.com