Australia Supports Loan Product for Farmers

Australia's Market Development Facility (MDF) has partnered with the Global Systems Mobile Association, Kamapim Limited and MiBank, to develop and implement a data-driven digital credit product to assist smallholder farmers in PNG to access bank loans.

This investment is the first of its kind in ONG and will support financial inclusions for smallholders many of whom are unable to access credit due to lack of collateral.

Credit needs are high among smallholder farmers, and access to finance is essential to improve production and quality.

However, financial institutions require collateral before loans are approved, and smallholders do not have the access or the savings to meet the credit requirements.

Moreover, the mostly operate with cash and so do not have a credit history.

This collaboration focuses on using digital technology to improve farm/farmer data collection and record keeping to establish a credit-scoring system to be shared with microbank MiBank.

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