Nordic Microfinance: Intelligent lending to improve livelihood sustainably

Enabling Microfinance Lending for Smallholder Farmers

Nordic Microfinance works with a vision to empower smallholder farmers in developing countries and improve their livelihood sustainably.

It has set up a Climate Smart Fund in Indonesia. Through loans and agricultural assistance, it aimed to promote sustainable farming practices among Indonesian smallholder farmers and enhance their incomes.

The Client's challenges

Some of the impediments faced while promoting responsible lending were:

  • Rampant improper farming practices
  • Absence of traceability
  • Lack of knowledge of sustainable agricultural practices
  • Non-existence of financial health and credit scores for farmers

Cropin enables smart agriculture lending

The client partnered with Cropin to extend loans to palm oil farmers in Indonesia. Using satellite imagery analytics, Cropin conducted Land Use Land Classification (LULC) of agricultural and forest land. It assigned credit scoring to farmers by assessing multiple factors and accurately estimated yield. Farmers were educated on sustainable agricultural practices. Cropin also enabled end-to-end traceability.

Impact

The project impacted:

  • 30 microfinance institutions
  • 25,000 farmers

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Nordic Microfinance works with a vision to empower smallholder farmers in developing countries and improve their livelihood sustainably.

It has set up a Climate Smart Fund in Indonesia. Through loans and agricultural assistance, it aimed to promote sustainable farming practices among Indonesian smallholder farmers and enhance their incomes.

The Client's challenges

Some of the impediments faced while promoting responsible lending were:

  • Rampant improper farming practices
  • Absence of traceability
  • Lack of knowledge of sustainable agricultural practices
  • Non-existence of financial health and credit scores for farmers

Cropin enables smart agriculture lending

The client partnered with Cropin to extend loans to palm oil farmers in Indonesia. Using satellite imagery analytics, Cropin conducted Land Use Land Classification (LULC) of agricultural and forest land. It assigned credit scoring to farmers by assessing multiple factors and accurately estimated yield. Farmers were educated on sustainable agricultural practices. Cropin also enabled end-to-end traceability.

Impact

The project impacted:

  • 30 microfinance institutions
  • 25,000 farmers