Why non-financial services in microfinance programs are important in agriculture?
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Non-financial services in microfinance programs are important in agriculture because they help address the challenges faced by borrowers in rural areas. These challenges include gestational period payments, competition from branded products, limitations in marketing and transportation, technical inefficiency, and underutilization of capacity . Financially excluded smallholder farmers often struggle to access credit facilities due to a lack of financial history data, making it difficult for them to fund their farming activities . Non-financial programs are being used by microfinance institutions to manage reputational risks and competitive pressures . Additionally, the provision of non-financial services, such as social services, in microfinance programs is associated with improved loan quality and greater depth of outreach . Therefore, non-financial services play a crucial role in supporting agricultural activities and promoting financial inclusion in rural areas.
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Open access•Journal Article | The provided paper does not mention non-financial services in microfinance programs and their importance in agriculture. |
11 Citations | The provided paper does not specifically mention the importance of non-financial services in microfinance programs in agriculture. |
26 Nov 2018 6 Citations | The provided paper does not directly address the importance of non-financial services in microfinance programs in agriculture. |
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