Lending Methodology

Farming know-how and experience is crucial for assessing if the potential client is able to generate revenues. Thus, the loan appraisal consists of four basic elements:

  • Screening: Assessment of the potential client’s eligibility
  • Agronomic analysis: Evaluation of the agricultural quality of a borrower (e.g. historic yield per hectare, access to irrigation, soil quality, etc)

For the risk assessment of a potential client from an agronomic point of view TAFF has developed a novel tool: CAP (Client Assessment Programme). It has been designed for loan officers and agronomists with little or no agricultural lending experience with the purpose of supporting them in their assessment of a farmer's credit risk profile.

  • Financial analysis: Assessment of a client's cash flow and financial ability (balance sheet, family living costs, etc)
  • Client Characteristics: Careful evaluation of the client’s characteristics and the willingness to repay the loan

Taking into account all four aspects the decision of approval or rejection is made by the PFI's credit committee together with TAFF experts. In a nutshell, our lending methodology is:

Our Partners

The Phase II of TAFF is financed by the EU
Funded by donors of the EBRD's multi-donor Early Transition Countries Fund including Canada, Finland, Germany, Ireland, Japan, Korea, Luxembourg, the Netherlands, Norway, Spain, Sweden, Switzerland, Taipei China, the United Kingdom and the US/EBRD SME Financing Facility initiative.
Technical Assistance provided by Frankfurt School of Finance & Management