Agricultural loans are amongst the most difficult to design and deliver. As part of its expanding operations in Indonesia, MicroSave worked with BPR Arta Kencana to design a loan tailored for the needs of onion cultivators Java. Based on the field research outcomes, a loan product prototype was designed to respond to clients’ preferred attributes such as competitive interest rate, easy collateral requirements, flexible repayment terms, simplicity in documentation, swift processing of loan applications etc. and to build in a savings component with an option for life insurance cover. The prototype also addressed situations of financial distress/crop failure. The design and testing process, as well as the final product itself, holds important lessons for all those involved in agricultural financing – across the globe.

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