Agro Micro Finance

The Foundation implemented a new loan scheme to satisfy the credit needs of paddy cultivators for land preparation and purchase of fertilizer.

The loan has to be repaid in full at the end of six months after the harvest. A maximum of Rs. 20,000/- is available in two installments at an interest of 28% per annum with a relate of 7% for on time payment special feature in the grace period of six month given to the borrower.

The objective of this scheme is to deliver financial services to members who guarantee each other’s loans. There is always peer pressure brought upon each borrower to repay the loan without default and also instills in them a sense of financial discipline.

The borrowers, members of Agromart production Societies, and the Field Staff of the Foundation are equally committed to training and individual site follow-up in order to select and implement viable income generating projects. The Field Officers are expected to provide proper guidance and follow-up, and are responsible for credit supervision. Every society has a Loan Committee and since the society member guarantees the loans, they are also required to stay together and be responsible for each other’s financial activities.

Paddy Loan Scheme