Fundraising Status:closed
Risk Rating:
What to know about this Lending Partner
Impact Category:
Agriculture
Default Rate:
0%
Currency Exchange Loss Rate:
0%
Total Loans Raised:
$191,150
Loans at Risk Rate:
0%
Kiva Borrowers:
70
Delinquency Rate:
0%
Interests and Fees:
21% PY
Status Update: July 6, 2018:
Kiva and Vasham have agreed to end their partnership after nearly three years and more than $190,000 in loans raised. Vasham is pursuing a new strategic direction and is no longer in need of Kiva funding. This partner has repaid its outstanding balance to Kiva in full, and these funds have been distributed to lenders. We thank Vasham for the years of collaboration and wish them success in their future endeavors.
Partner description:
Vasham is a social enterprise that seeks to provide smallholder farmers in Indonesia with the financing, expertise, and income security needed to achieve better standards of living.
As Indonesia’s middle class grows, demand for certain foods such as chicken is increasing and alongside this trend, the demand for maize is also increasing due to its use as animal feed in the poultry sector. Vasham offers low collateral loans that will help smallholder corn farmers grow their businesses, increase productivity, and guarantee them a fair price for their production.
A unique lending approach:
Kiva funding is used to support Vasham’s loans focused on providing farmers with the resources to plant and harvest maize.
Farmers can sell their entire maize production directly to Vasham's drying facilities, allowing them to bypass the many layers of agents and therefore guaranteeing them a better price. Vasham also commits to purchasing 100% of every harvest, regardless of quality, which provides an additional layer of financial security for farmers.
Vasham has a partnership with Japfa, one of the largest animal feed companies in Indonesia with a market share of 30%, which guarantees an end buyer for dried maize. Both organizations are heavily invested in by Handojo Santosa, an Indonesian businessman, but Vasham and Japfa do not share staff or profits.