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Providing Services to Smallholders
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  HOME > Providing Services to Smallholders > Credit - How can it best be provided? > Screening and Selection of Borrowers  
Introduction
Elements for Successful Business
Market Linkages
Overview
Which Services are Needed?
Credit - How can it best be provided?
Research, Training and Extension
Agro-Chemicals, Fertilizers and Seeds
Crop Storage, Purchasing and Transportation
Monitoring and Evaluation of Service Provision
Agricultural and Environmental Practices
Quality Assurance & Human Health and Safety

Current and Future Trends

 


SCREENING AND SELECTION OF BORROWERS

Farmers must have the necessary skills and resources to put the credit to productive use, must be creditworthy,must be committed to the enterprise for which they are borrowing, and must repay their loans. It is necessary to screen out farmers who may prove to be unreliable or lazy.

With all types of lending there is a need to overcome the potential for default, due to an inability to repay (through crop failure), or 'strategic' default when a farmer 'chooses' not to repay-see case study on Cottco, Zimbabwe.

Key Questions

1. How do I screen and select appropriate smallholders for loans? Considerations

2. How do I ensure repayment of the loan in full?
Considerations

Case Studies
 
Sample Documents
 
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Natural Resources Institute
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Natural Resources Institute 2003