Rural and Agricultural Finance ProgramRural and Agricultural Finance Program

Agricultural Lending Methodologies & Techniques for Smallholder and Lowest Income Rural Families

Oscar Guzmán

It is estimated that out of the 500 million smallholders living in low and middle-income countries, only 35 million (7%) have access to value chain finance, resulting in high levels of financial exclusion in rural areas. Based on this market segmentation, innovative agricultural lending products, methodologies, and techniques are needed from different kinds of financial institutions, banks, credit unions and Microfinance institutions.

Throughout the discussion involving experiences and practical cases from Africa, Asia and Latin America, this course will delve into many questions.  How does one develop and implement agricultural finance / lending methodologies and products to serve the lowest income farming families?  What kinds of tools and techniques are needed to minimize the credit risk and to adequate the lending products to the rural smallholder’s irregular cash flows?  How does one implement these efforts with digital finance channels in order to reduce risk and increase efficiency?  How does one reduce barriers and sustainably facilitate financial inclusion for vulnerable rural families?

The course will give participants practical approaches, tools and skills to successfully implement agricultural finance / lending methodologies targeted to commercial rural smallholders in loose value chains and “non-commercial smallholders”.  The course will present the need to target these groups with a wide range of financial services using technology and channels in response to their financial needs, reducing transactional costs for clients but also ensuring sustainability for the financial institutions.

Intended audience: Financial institutions’ top and middle management, and donors and other stakeholders will find this course useful as its practical approach will show how the financial services should be adjusted to serve the rural bottom of the pyramid.

To See Course Syllabus, click here

Boulder Institute of Microfinance

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