Addressing rural finance challenges

• I need to Invest more per hectare to earn more per quintal

• I need to invest more to get more • Producing sesame is finance intensive. • I have my cattle to be held as collateral• Could group loan secure my request

for finance?.....

• Farming involves risk• We need to Collateral your assets • We do not have your credit history• You do not have a farm record • You do not have diversified business• Credit worthiness • We run out of cash…..

Key Questions • Q1: What additional risks impede agricultural lending? Finance• Q2: How can informal money lending be replaced by more affordable

options for formal credit. Finance/Farmer/FCU/PC• Q3: How PCs and FCUs would be able to address the challenge of

access to finance? FCU/PCs • Q4: How is informal source of financing affecting the farmer? Is that

possible to avoid/minimize the informal source? How? All• Q5: How can we get more money in the system, to finance best

agricultural practices (input credit) and finance marketing (output credit). All • Q6: How the different stakeholders across the sesame value chain

collaborate to address the challenge of access to finance? stakeholders

Actions to be taken