ACCESS TO FINANCE (FARMERS CREDIT CARD)

ACCESS TO FINANCE (FARMERS CREDIT CARD)

Despite of subsidized interest agriculture financing program brought by government of Nepal in its financial policy in 2014, its still limited to a handful of people only. As per central bank data, by mid Oct 2019, only 18,805 borrowers has access to the subsidized agriculture loan. In a country with the population of 28 million, and with more than 60% of people engaged in agriculture for their livelihoods it’s a miserable situation. Regarding this scenario, this initiative has designed and implemented a very innovative model to provide access to finance, business development services and extension services harnessing the digital potential in partnership with various stakeholders. The initiative will access the capital needed for the individual farming families in co-operation with local government agencies, and needed credit will be disbursed through a QR code card which can be accessed only with the merchants/vendors which supplies agriculture inputs. This controlled flow of credit restricts farmers using the loan amount except for the agriculture purpose. It ensures, inflow of credit for the stated purpose and further generates a huge chunk of data which helps to deliver other value added services to small holding farming farmers. We are the first organization in Nepal to rollout the Farmers Credit Card system in cooperation with financial institutions of Nepal.
For reference www.kccnepal.com