Stage 1 : Ideation
Smallholder farmers have limited access to formal credit, forcing them to rely on informal moneylenders with their inflated borrowing costs.
Funds Raised to Date
To introduce a new microfinance scheme for smallholder farmers.
How does your innovation work?
Boston University is testing a new approach to microfinance, which incorporates community members, such as small-scale traders, shopkeepers and local government officials, into the microfinance loan-making and monitoring process.
Planned Goals and Milestones
The new approach, which also features loans with longer repayment timelines more suited to farmers’ needs, may reduce farmers' dependence on informal moneylenders and traders, and help them keep a larger share their profits.