Access to Finance for Smallholder Farmers: Learning from the Experiences of Microfinance Institutions in Latin America

Topic :

The study intends to identify and disseminate the best practices of MFIs that have successfully implemented agricultural lending operations targeting smallholders in Latin America and the Caribbean (LAC). The study main focus was on smallholders in loose value chains and subsistence farmers in order to support replication and expansion of scalable approaches. IFC research study seeks to understand the motivations of MFIs that venture into agricultural finance, how the products they offer have been structured, and how they were implemented, with a specific focus on agricultural finance programs and products that are designed for smallholders in loose value chains and non-commercial (subsistence) farmers. In addition, the study also highlights areas of technical assistance and other forms of donor support that may affect MFIs’ effectiveness in reaching smallholders. At the end, the paper provides the key recommendations for MFIs serving or looking to serve smallholder farmers.

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