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HOME > Providing Services to Smallholders > Credit - How can it best be provided? > 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? |
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Natural
Resources Institute 2003
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