Juhudi Kilimo is a for-profit enterprise that seeks to lift living standards for financially excluded rural smallholder farmers. It does this by providing transformative financial solutions and technical assistance for agribusiness. Juhudi Kilimo secured funding from Mastercard Foundation’s Fund for Rural Prosperity in May 2016 to pilot the EFL credit assessment on smallholder farmers.
Juhudi Kilimo needed to increase acceptance for people with limited financial information, credit history and collateral, without taking on more risk. They also wanted to decrease turnaround time for high scoring clients.
Juhudi Kilimo began using EFL to assess new borrowers. EFL built a customized model for Juhudi’s clients. To date, Juhudi has assessed 6,000 clients.
Juhudi can now increase max loan amount available from 67% of collateral to 100% of collateral for high scoring individuals. They can safely increase their acceptance rate for previously rejected clients. And clients with high EFL scores can access an energy loan based on their score alone – no need for collateral or to have taken a primary loan before taking an energy loan.
Moving forward Juhudi will be moving beyond loan officer-based scoring to SMS-based remote scoring.