AGRIBUDDY develops a credit scoring and distribution system that connects financial institutions to rural credit customers for better ROI
Farmers do not have the same predictability of income that salaried workers or even businesspeople do. This raises their credit risk in the eyes of lenders and almost always results in only people with land collateral able to avail of credit.
Combined with low educational levels, which means farmers find it difficult to understand contracts and costs, this results both in the poor access to credit, as well as misuse of credit already availed, for expenditure rather than investment into farming crops.
AGRIBUDDY has tied up with ACLEDA Bank to use our credit scoring system to enable ACLEDA to lend to farmers at reasonable rates of interest through our field network of Buddies.
Also, by being part of the supply chain for agro-inputs, AGRIBUDDY can control the use of funds and ensure to a significant extent that crop loans are used only to buy materials for farming.
Pilot Project: 1,973 farmers have availed of US$ 254,478 worth of credit from our partnership with ACLEDA.
We have also tied up with Sathapana Bank and AMK, a dynamic MFI based in Cambodia, as well as with Andhra Bank and HDFC Bank in India.