Step One
Lenana enters into deduction agreement with an off-taker of farmer’s produce e.g. tea factory
Crop Advances Loans
This is a revolving short-term loan (up to 90 days) that is advanced to a farmer for their working capital needs. The loan limit is approved based on the farmer’s ooohistorical production output average. This product has minimal collateral requirements for the farmer, as the loan repay- ments are deducted at source from the ooooff-takers of their produce e.g. processing factories. Launched in 2018, this product is at the scale-up stage and currently accounts for 60% of our revenue.
How It Works
Step Two
Lenana opens lines of credit for all eligible farmers. The credit limit allowed is based on the farmer’s historical deliveries to the off-taker
Step Three
Upon maturity of farmer’s dues, the off-taker deducts our loan dues and remits the net amount to the farmer
