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On a 130k loan, total subsidy is 11k; half in cash parked in reserve account for a loan loan guarantee) and half is operating subsidy
Guarantee is at the level of a lenders portfolio, not tied to individual loan. Overall bank NPA Is 2%, agri is 3.5%. Aceli puts 5% of total portfolio value in a reserve account so the bank can manage to 6-7% losses (eg, which allows it to grow its borrower base and be more aggressive/inclusive in who it lends to and keep the same losses)inclusive without messing up its realized loss ratio
The operating subsidy is meant to cover transaction costs and are bonuses for lending to a new borrowers, gender inclusivity, support environmentally friendly activity
Launched in Sep 2020; 330 loans so far, targeting 480 in 2022
10% of loans are to agri-input dealers, 30% to primary production (coops and mid size farmers), 30% post-harvest handling + storage and 30% processors
Target ticket size of 25k to 1.7mn; $50k annual revenue businesses who employ 5 FTE or source from 25 smallholders
Exploring a product for off grid energy for farms.
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