The Line of Credit is one of an integrated set of instrument and intervention intended to facilitate the development of competitive business cluster. Line of Credit will be primarily focused on investment linked to the supported business cluster so that they happen within the wider mentoring process and have a greater chance of leading to the systematic changes that are necessary to achieve the scale of impact and systematic change desired.
Objective of LoC
The specific objective of line of credit is
- To stimulate increased mainstream lending into high potential business cluster supported by AIMS.
- To enable partner FIs to test more difficult lending and new product relevant to the supported business cluster and, by implication, other potential growth areas of the rural economic.
- To act as demonstration of potentially profitable lending opportunities in the wider priority supply chain and other potential growth sectors in the rural economic.
ARDB’s RETAIL LENDING UNDER AIMS PROJECT
Retail lending refers to providing loan directly to end-borrower/AIMS target beneficiaries. ARDB can be select the end- borrowers by its own or referral by AIMS.
The purpose of loan to the beneficiaries are for income generating activities involved to 5 commodities value chain; quality assured rice , backyard chicken, raw silk, cassava and vegetable.