Difference between revisions of "SPIS Invest"
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| − | + | {{SPIS Spanish}}{{Spis Invest}}{{Back to SPIS Toolbox}}<br/> | |
| − | Financing solar-powered irrigation can be an opportunity for financial institutions seeking to diversify their loan portfolio and expanding their range of financial products. The '''INVEST''' module focuses on the product features for SPIS loans, considering direct financing by financial institution to a small and medium-scale agricultural end borrower. | + | === '''<span style="color: rgb(135, 150, 55);">Module Aim and Orientation</span>''' === |
| − | <span class="mw-customtoggle-SPIS3" style="font-size:small; font-weight: bold; display:inline-block; | + | |
| − | <div | + | Financing solar-powered irrigation can be an opportunity for financial institutions seeking to diversify their loan portfolio and expanding their range of financial products. The '''INVEST''' module focuses on the product features for SPIS loans, considering direct financing by financial institution to a small and medium-scale agricultural end borrower. <span class="mw-customtoggle-SPIS3" style="color: blue; font-size: small; font-weight: bold; float: right; display: inline-block;"><span class="mw-customtoggletext">read more</span></span> |
| + | <div class="mw-collapsible mw-collapsed" id="mw-customcollapsible-spis3"> | ||
The module brings out the difference of financing solar powered irrigation as compared to conventional irrigation systems. It provides guidance to financial service providers who are already financing or planning to finance SPIS. It thus addresses two groups: | The module brings out the difference of financing solar powered irrigation as compared to conventional irrigation systems. It provides guidance to financial service providers who are already financing or planning to finance SPIS. It thus addresses two groups: | ||
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*'''Loan officers''' who assess single loan applications for financing SPIS. | *'''Loan officers''' who assess single loan applications for financing SPIS. | ||
</div> | </div> | ||
| + | === '''<span style="color: rgb(135, 150, 55);">Process Steps</span>'''<span style="color: rgb(135, 150, 55);"></span> === | ||
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| + | Three steps have been elaborated in the '''INVEST''' module to support the process of defining the financial service provider’s credit policy at the '''management level''': Firstly, the analysis of the potential of the SPIS market segment; secondly, the determination of general credit risks involved; and thirdly, the design and test of the suitable financial instruments. <span class="mw-customtoggle-SPIS6" style="color: blue; font-size: small; font-weight: bold; float: right; display: inline-block;"><span class="mw-customtoggletext">read more</span></span> | ||
| + | <div class="mw-collapsible mw-collapsed" id="mw-customcollapsible-spis6"> | ||
| + | For the specific individual loan assessment process on '''loan operations level''', three main steps have been elaborated: Firstly, the determination of the financing volume and calculation of the profitability of the investment; secondly, the assessment of credit risk and collateral of the potential borrower; and finally, determination of the cash flow and the repayment plan for the single potential borrower, along with loan conditions. | ||
| + | </div> | ||
| + | === '''<span style="color: rgb(135, 150, 55);">Chapters</span>'''<br/> === | ||
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| + | '''1. [[SPIS Toolbox - Basic decision-making tools|Basic decision-making tools]]'''<br/>'''2. [[SPIS Toolbox - Credit Policy: Analyze Potential|Credit policy: Analyze potential]]'''<br/>'''3. [[SPIS Toolbox - Credit Policy: Risk Analysis|Credit policy: Risk analysis]]'''<br/>'''4. [[SPIS Toolbox - Credit Policy: Select/develop Suitable Financial Instruments|Credit policy: Select/develop suitable financial instruments]]'''<br/>'''5. [[SPIS Toolbox - Loan Assessment: Determine Financing Volume and Profitability|Loan assessment: Determine financing volume and profitability]]'''<br/>'''6. [[SPIS Toolbox - Loan Assessment: Assess Credit Risk and Collateral|Loan assessment: Assess credit risk and collateral]]'''<br/>'''7. [[SPIS Toolbox - Loan assessment: Adjust Repayment Plan to Cash Flow|Loan assessment: Adjust repayment plan to cash flow]]'''<br/> | ||
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| + | === '''<span style="color: rgb(135, 150, 55);">Supplementary Tools</span>''' === | ||
| − | + | *'''[[:File:INVEST Farm Analysis Tool V1.0.xlsx|INVEST – Farm Analysis Tool]]'''<br/> | |
| + | *''Watch the instruction video [https://www.youtube.com/watch?v=bJsftBWOpdo&t=45s here] to learn more!<br/> | ||
| − | + | *'''[[:File:INVEST Payback Tool V1.0.xlsx|INVEST – Payback Tool]]''' | |
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| − | === '''<span style="color: | + | === '''<span style="color: rgb(135, 150, 55);">Further Readings</span>'''<br/> === |
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*Agriculture Finance Support Facility (AGRIFIN). Retrieved from [https://www.agrifinfacility.org/ https://www.agrifinfacility.org/] | *Agriculture Finance Support Facility (AGRIFIN). Retrieved from [https://www.agrifinfacility.org/ https://www.agrifinfacility.org/] | ||
| − | <span class="mw-customtoggle-SPIS30" style="font-size:small; font-weight: bold; display:inline-block; | + | |
| − | <div | + | <span class="mw-customtoggle-SPIS30" style="color: blue; font-size: small; font-weight: bold; float: right; display: inline-block;"><span class="mw-customtoggletext">read more</span></span> |
| + | <div class="mw-collapsible mw-collapsed" id="mw-customcollapsible-spis30"> | ||
*Making Finance works for Africa (2017): Agricultural & Rural Finance. Retrieved from [http://www.mfw4a.org/agricultural-rural-finance/agricultural-rural-finance.html http://www.mfw4a.org/agricultural-rural-finance/agricultural-rural-finance.html] | *Making Finance works for Africa (2017): Agricultural & Rural Finance. Retrieved from [http://www.mfw4a.org/agricultural-rural-finance/agricultural-rural-finance.html http://www.mfw4a.org/agricultural-rural-finance/agricultural-rural-finance.html] | ||
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*SOS Faim (2013): Developing rural finance through public-private sector cooperation. In: Zoom Microfinance 40. Retrieved from [http://bit.ly/2wGyagM https://www.sosfaim.lu/en/publication/developing-rural-finance-through-public-private-sector-cooperation/] | *SOS Faim (2013): Developing rural finance through public-private sector cooperation. In: Zoom Microfinance 40. Retrieved from [http://bit.ly/2wGyagM https://www.sosfaim.lu/en/publication/developing-rural-finance-through-public-private-sector-cooperation/] | ||
</div> | </div> | ||
| + | === '''<span style="color: rgb(135, 150, 55);">Annex - Collection of Formulae</span>'''<br/> === | ||
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*'''[[SPIS Toolbox - Finance - Annex|Link]]''' | *'''[[SPIS Toolbox - Finance - Annex|Link]]''' | ||
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{{SPIS Magic Words}} | {{SPIS Magic Words}} | ||
[[Category:SPIS_Toolbox]] | [[Category:SPIS_Toolbox]] | ||
Revision as of 09:48, 18 April 2019
Module Aim and Orientation
Financing solar-powered irrigation can be an opportunity for financial institutions seeking to diversify their loan portfolio and expanding their range of financial products. The INVEST module focuses on the product features for SPIS loans, considering direct financing by financial institution to a small and medium-scale agricultural end borrower. read more
The module brings out the difference of financing solar powered irrigation as compared to conventional irrigation systems. It provides guidance to financial service providers who are already financing or planning to finance SPIS. It thus addresses two groups:
- Stakeholders at management level who decide upon credit policies of a financial service provider.
- Loan officers who assess single loan applications for financing SPIS.
Process Steps
Three steps have been elaborated in the INVEST module to support the process of defining the financial service provider’s credit policy at the management level: Firstly, the analysis of the potential of the SPIS market segment; secondly, the determination of general credit risks involved; and thirdly, the design and test of the suitable financial instruments. read more
For the specific individual loan assessment process on loan operations level, three main steps have been elaborated: Firstly, the determination of the financing volume and calculation of the profitability of the investment; secondly, the assessment of credit risk and collateral of the potential borrower; and finally, determination of the cash flow and the repayment plan for the single potential borrower, along with loan conditions.
Chapters
1. Basic decision-making tools
2. Credit policy: Analyze potential
3. Credit policy: Risk analysis
4. Credit policy: Select/develop suitable financial instruments
5. Loan assessment: Determine financing volume and profitability
6. Loan assessment: Assess credit risk and collateral
7. Loan assessment: Adjust repayment plan to cash flow
Supplementary Tools
- INVEST – Farm Analysis Tool
- Watch the instruction video here to learn more!
Further Readings
- Agriculture Finance Support Facility (AGRIFIN). Retrieved from https://www.agrifinfacility.org/
read more
- Making Finance works for Africa (2017): Agricultural & Rural Finance. Retrieved from http://www.mfw4a.org/agricultural-rural-finance/agricultural-rural-finance.html
- Microfinance Gateway (2014): Highlighting noteworthy publications and key resources on rural and agricultural finance. In: Gateway Guide to Rural and Agricultural Finance. Retrieved from http://www.microfinancegateway.org/library/gateway-guide-rural-and-agricultural-finance
- AFRACO, FAO, the Land Bank of South Africa and the World Bank (2009): Expert Meeting in Managing Risk in Financing Agriculture. Johannesburg, South Africa. Retrieved from http://siteresources.worldbank.org/EXTARD/Resources/336681-1252501755087/Joburg_proceedings.pdf
- Bandyopadhyay, A. (2007): Credit Risk Models for Managing Bank's Agricultural Loan Portfolio. Pune, India. In: Munich Personal RePEc Archive (MPRA) 5357. Retrieved from https://mpra.ub.uni-muenchen.de/5357/1/MPRA_paper_5357.pdf
- Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH (2011): Agricultural Finance – Trends, Issues and Challenges. Retrieved from http://www.ruralfinanceandinvestment.org/sites/default/files/06__giz2011-0460en-agricultural-finance.pdf
- International Finance Corporation (IFC) (2011): Scaling Up Access to Finance for Agricultural SMEs Policy Review and Recommendations. Washington D.C., USA. Retrieved from https://www.ifc.org/wps/wcm/connect/04da89804a02e2e19ce0fdd1a5d13d27/G20_Agrifinance_Report.pdf?MOD=AJPERES
- International Finance Corporation (IFC) (2012): Innovative Agricultural SME Finance Models. Washington D.C., USA. Retrieved from http://www.ifc.org/wps/wcm/connect/55301b804ebc5f379f86bf45b400a808/Innovative+Agricultural+SME+Fi- nance+Models.pdf?MOD=AJPERES
- Mees, M. & Destrait, F. (2015): Guarantee Funds: A Response to Agricultural Credit Risk – The Latin American Guarantee Fund. SOS Faim Belgium. In: Zoom Microfinance 44. Retrieved from https://www.microfinancegateway.org/library/guarantee-funds-response-agricultural-credit-risk-–-latin-american-guarantee-fund
- Prasoon, P. K., Pareek, A., Natu, A. J., Ledesma, J. & Barman, N. D. (2014): Resource Book on Designing & Delivering Agriculture Financing Products. Retrieved from http://www.microsave.net/files/pdf/Designing_Delivering_Agriculture_Financing_Products.pdf
- SOS Faim (2013): Developing rural finance through public-private sector cooperation. In: Zoom Microfinance 40. Retrieved from https://www.sosfaim.lu/en/publication/developing-rural-finance-through-public-private-sector-cooperation/
