AgroFides' mission is to unlock the potential of farmers by turning cash-based farming operations to credit-based businesses.
AgroFides carries out its mission of assisting small and medium-scale farmers by facilitating access to loans.
There is untapped capital available for farmers, but the lack of reliable tools to assess creditworthiness prevents creditworthy farmers from securing this capital. 90-95% of farmers in sub-Saharan Africa are unable to obtain loans because banks and micro-finance institutions have no reliable or simplified way to underwrite and service the small loans that farmers require. On the off chance that a small or medium-scale farmer receives a loan, the terms, including the interest rate associated with the loan, will likely hinder the borrower' potential for prosperity into the future. This interest rate, which is between 25-35%, is among the leading contributors of loan default in the agricultural sector.
We provide two distinct but related services to lenders and farmers . We assess creditworthiness by addressing the critical components of credit. We then offer resources , including climate-smart agricultural practices, to improve the capacity of farmers. Finally, we provide a platform to bridge previously uncharted relationships between lenders and small and medium-scale farmers.
AgroFides' goal is to turn cash-based farming into credit-based businesses and dramatically reduce the high-interest rate that farmers pay to eliminate the poverty trap that stifles many farmers. As empirical research studies have shown, farmers would likely be able to grow their business and pay back loans with proper appraisals and client selections, adequate loan sizes, and reasonable interest rates.(1, 2) The growth of these farming businesses provides an opportunity for lenders to receive competitive returns.
- Causes and control of loan default/delinquency in microfinance institutions in Ghana. American International Journal of Contemporary Research, 4(12), 36-45. — Addae-Korankye, A. (2014)
- Factors affecting repayment performance in microfinance programs in Malaysia. Procedia-Social and Behavioral Sciences, 62, 806-811. — Nawai, N., & Shariff, M. N. M. (2012)