1. An Operational Framework for
Smallholders’ Access to Finance through Bank
(A- Card Model)
Ag. Input Retailer
Agent Bank
Smallholder Farmers
Micro Finance Institute (MFI)
Commercial Bank
Farmers purchase ag. inputs from the retailer using A-card (S-10);
Account to account cash transfer takes place through retailer’s smart phone and retailers withdraw cash from agent bank booth (S-11)
Bank provides credit card (A-card) to the farmers through advice of MFI and AESA project and maintains the bank accounts (S-9)
Farmers payback the credited amount with 10% interest after 6 months through the Agent bank booth (S-12)
Retailer operates an bank account with Bank through Agent bank (S-8)
A financial agreement between MFI and bank for Agent banking and maintaining a term deposit account with the Bank to provide a security on farmers’ credit (S-6)
A bilateral MoU between AESA project and MFI to select and capacity building of farmers on business planning and financial management (S-4)
A tripartite MoU among AESA-MFI and Bank (S-5)
Farmers registered with MFI and have savings deposit (S-2)
AESA Project
AESA project organizes, trains and links the smallholder farmer groups with the MFI for savings (S-1)
AESA project identifies inputs retailers with smart phone and orient them on ‘A-card’ (S-3)
Farmers open bank accounts through advice of AESA project and MFI (S-7)
S-1
S-2
S-7
S-4
S-5
S-6
S-8
S-9
S-10
S-11
S-12
S-3
S= Step
Initial Stage
Development Stage
Operational Stage
Repayment stage
S1 – S3
S4 – S8
S9 – S11
S12
USAID Agricultural Extension Support Activity Project