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Micro Credit Organisation PDF Print E-mail
HarvestAgrinas Kazakhstan has an active micro-loan program which supports our vision to help the rural farmer. Why do rural people need access to credit and why does Agrinas need to be involved?

On one hand the answer is actually quite simple, while on the other more complicated.............The situation is complex because rural peoples in Kazakhstan still have very little participation in the new economy of Central Asia. Urban areas have been developing at a rapid rate in the last ten years. Credit officerHowever, rural areas have seen very little change since Kazakhstan's independence from the Soviet Union. If you go to any of the villages in which Agrinas works, you will see things looking as they did fifty years ago - sanitary services such as garbage and sewer are non existent, roads are made of dirt, drinking water is available only once a day, jobs almost all center around agriculture as new businesses have never opened. Each household has two or more persons of working age who are unemployed or under-employed, so there is not enough margin for income earned from the last growing season to carryover to the next harvest. clientFarmers need money to buy seed, fertilizer, rent land, and plough their fields, but they don't have enough.

Secondly, the answer is simple because rural Kazakhs can receive credit from Agrinas when they can not from a conventional bank. The reason? Collateral. Banks do not accept a village home or land as collateral. Only homes within urban areas can be used to obtain loans from the banks. Agrinas, however, is willing to consider the village home as sufficient to cover the risk of the micro-loan, and our application process is intended to choose applicants who we feel can and will repay the loan.

Mobile officeAdditionally, some loans can be obtained from non-official, "black market" types of individuals by agreeing to a 10% per month payback for the loan. These are usually not feasible for farmers and we hear from them that they are very happy with our 2.6% per month rate which is similar to the rate charged by conventional banks.

The purpose of our credit-program is development, not relief. Credit officerWe give credit to rural peoples who are good stewards of their money. We also give credit to experienced farmers, who have the skills and know-how to work the soil. In this way we are giving those with the will and ability to succeed an opportunity to do so!

Brief Statistics - 2010:
175 Loans disbursed.
Loan portfolio of € 158,000.
100% repayment.
 

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