Farm credit and microfinance – is there a critical mismatch?
Old-style, subsidized, farming finance has largely disappeared and has been replaced by 'new paradigm' microfinance. This article examines the characteristics of a standard microfinance loan and compares them with the frequency, seasonality and loan size requirements of typical microfinanceborrowers, including farmers and petty traders. It also examines data on the rate of return from investments for a number of micro-enterprises and compares them with the rate of return from a number of farming investments to discover whether these businesses make sufficient profit to cover
the interest payments on the loan. It concludes that microfinance institutions will have to bring their interest charges down and introduce new loan products to meet the needs of farmers.
borrowers, including farmers and petty traders. It also examines data on the rate of return from investments for a number of micro-enterprises and compares them with the rate of return from a number of farming investments to discover whether these businesses make sufficient profit to cover
the interest payments on the loan. It concludes that microfinance institutions will have to bring their interest charges down and introduce new loan products to meet the needs of farmers.
A critical review of CGAP-IADB policies inspired by the Fondo de Desarrollo Local, Nicaragua
Johan Bastiaensen, Johan Bastiaensen
Pedro Marchetti, Pedro Marchetti
Enterprise Development & Microfinance, Vol. 18 (2007), Iss. 2 P.143
https://doi.org/10.3362/1755-1986.2007.016 [Citations: 8]Expanding the Frontier in Rural Finance
2. Strategic alliances for scale and scope economies: lessons from FADES in Bolivia
Gonzalez-Vega, Claudio
Quirós, Rodolfo
2008
https://doi.org/10.3362/9781780440798.002 [Citations: 1]Microfinance Interest Rates and Client Returns
HARPER, MALCOLM
Journal of Agrarian Change, Vol. 12 (2012), Iss. 4 P.564
https://doi.org/10.1111/j.1471-0366.2012.00374.x [Citations: 11]The Ethical Crisis in Microfinance: Issues, Findings, and Implications
Hudon, Marek
Sandberg, Joakim
Business Ethics Quarterly, Vol. 23 (2013), Iss. 4 P.561
https://doi.org/10.5840/beq201323440 [Citations: 104]Global Economic Revolutions: Big Data Governance and Business Analytics for Sustainability
Fintech-Enabled Financial Inclusion for Rural Networking
Prasanna, P.
2024
https://doi.org/10.1007/978-3-031-50518-8_3 [Citations: 2]A critical review of CGAP-IADB policies inspired by the Fondo de Desarrollo Local, Nicaragua
Johan Bastiaensen, Johan Bastiaensen
Pedro Marchetti, Pedro Marchetti
Enterprise Development & Microfinance, Vol. 18 (2007), Iss. 2 P.143
https://doi.org/10.3362/1755-1986.2007.016 [Citations: 8]- Value chain financing: evidence from Zambia on smallholder access to finance for mechanization
- Developing agro-pastoral entrepreneurship: bundling blended finance and technology
- Building frontline market facilitators' capacity: the case of the ‘Integrating Very Poor Producers into Value Chains Field Guide’
- Boosting financial inclusion through social assistance reform: evidence-based approach in selecting a payment system
- Impact of COVID-19 on livestock exports from Somalia and the Horn of Africa
Browse our other journals
