Tatyana is a subsistence farmer. She is married and has two daughters, ages 3 and 4. Tatyana works full-time as a clerk in a store and her husband is a full-time construction worker. Her husband's job is very demanding and he ends up working a lot of overtime hours. As a result, Tatyana is taking care of the land by herself. She grows various vegetables in small amounts for her family's consumption. Tatyana finds it difficult to farm and take care of the kids at the same time. To ease the load of manual labour, Tatyana is seeking help to purchase mechanized farming equipment.
About Agro Capital Management
This Kiva loan will be used to provide borrowers with needed goods or services, as opposed to cash or financial credit.
ACM uses a financing model that is relatively unique. Typically, a microfinance institution will lend money to farmers, who then purchase products they need to have a successful harvest and pay back the loan. In ACM's model, the organization purchases the agricultural goods before reselling them to small farmers on an affordable payment plan. This allows farmers to begin using the goods they buy without having to pay in full upfront.
As part of ACM's offering, clients receive training to improve crop yields. In order to cover its costs, the organization charges a small service fee. The amount of each Kiva loan includes both the cost of agricultural supplies and the service fee. As with all Kiva loans, repayments will be returned to lenders on the schedule outlined.