Actualidad Colombia

New Concepts Associated to Agricultural Microcredit

Draft resolution amending resolution 7/2012 on Microcredit in Finagro

The National Farm Credit Commission (Comisión Nacional de Crédito Agropecuario) has changed the rules on microlending to farmers, who can now access credit with discounts from the farm-financing fund, Fondo para el Financiamiento del Sector Agropecuario (FINAGRO, introduced in Progreso 4). The key change is the inclusion of voluntary microinsurance premiums among the items eligible for such loans. This will help small-scale farmers to cover the risks to which they are exposed in their microbusinesses and in their lives, by giving them access to funding for life insurance, crop and livestock insurance, damage insurance, property insurance and funeral insurance, etc.

Better conditions for placement of microinsurance

This also helps the microfinance entities to place microinsurance in the market, which both boosts the entities' product turnover and also enables their microborrowers, an especially vulnerable group in the population, to lower their exposure to risks.