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Learnings from BASIX, IndiaPresented By
Sasidhar Thumuluri and Reji Varghese
Innovative Lending Mechanisms for Reaching Smallholders
AgriFin Finance Agriculture Forum 2015May 11-15, 2015 – Istanbul, Turkey
Basix Social Enterprise Group
Engaged in livelihood promotion since 1996, covering the following activities for over two million low-income households in India and 10 developing countries:
Financial Education
Enabling Access to Banking by the Poor
Micro-Savings
Micro-Credit
Micro-Insurance
Remittances
Agricultural and Livestock Development Services
Institutional Development and Capacity Building
Vocational Training Services
Technology Solutions for Financial Institutions
Energy and environment solutions
Government to Citizen Services
Consulting Services for all above
As on now, 13 Entities in 10 Countries and 27 States of India covering more than 30,000 villages, 600 towns and two million low-income households
Multiple Products & Services
8000 plus Micro-Franchisees
3000 plus Staff
Partnering many Governments Institutions, Banks and International Agencies
Agri Portfolio and
Products offered by
BASIX
Portfolio Mix
$10 , 3%
$85 , 32%
$174 , 65%
Agri InvestmentLoansAgricultural Loans
Agri Allied Loans
Amt in $ Millions
$270 million loan
disbursements across
1.1 million small holders
Loans disbursed up to
60 to 70% of scale of
finance
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
Agri InvestmentLoans
Agricultural Loans Agri Allied Loans
39,160
366,661
763,531
No of Loans
Loans disbursed in Kharif and
Rabi season
Agri Investment loans duration
to 36 to 60 months
Agri Allied and Agricultural
loans for 12 to 24 months
Agri Finance Products
• Agricultural Loans for Crop cultivation
– Cash Crops (Cotton, Chilli, Sugar cane, Ground nut etc)
– Field Crops ( Paddy, Maze, Pulses etc)
• Livestock Loans
– Dairy
• Purchase of Milch Animals (Local and cross breed)
• Purchase of fodder and feeds
• Construction of cattle sheds etc
– Non-dairy – sheep/goat rearing, fishery, piggery, poultry
• Agri Investment Loans
– Digging of bore wells
– Land Levelling
– Barren land conversion into cultivation land etc
– Orchards and plantations
• Agri Value Chain Financing through Farmer Groups
• Weather Index based Crop Insurance
Important factors for Agri-Finance Product Development
Character
Capacity
CollateralCapital
Conditions
Challenges in Lending to
Smallholders
Lender’s Dilemma
• Fragmented portfolio of small ticket loans• Limited MIS capability to track portfolio and
manage risk• High cost of client acquisition and delivery of
finance• Risk of crop loss• Lack of adequate/appropriate insurance• Lack of timely and low cost collection mechanisms
Input Supply
• Quality
• Availability• Infrastructure
• Knowledge
• Financial
Cultivation
• Production
• Price
• Operational
• Financial• Institutional
Storage
• Infrastructure
• Quality
• Technology
• Logistics
• Seasonal Glut
Processing
• Technology
• RM supply
• Human Resource
• Quality
• Govt. Policies
Marketing
• Infrastructure
• Storage
• Price
• Product Loss
• Govt. Policy
Risks along Agri Value Chain
NOT CLEAR ON THE PROBLEM
TRAVEL DISTANCE TO FIND THE SOLUTION
DELAY IN FINDING THE SOLUTION
AGRICULTURE EXPERT NOT AVAILABLE
?
???
???
Information and Infrastructure Gaps
Innovative Delivery Models
HAPPY FARMERS
Holistic Approach – Production Practices for Yield enhancement; Financial
Asset & Risk Management; Emergency Response System
CropLense
Soil Testing System Credit Scoring and Risk Manage
ment System
FPO
FPO
Under Development
Farmer EngagementLoan Portfolio Management
Loan Management
System Core Banking
Solution
Distribution and Collection
System (ViTran SP)
Insurance MIS
Weather Station
BINDAS Insurance Company
Data Servers
Crop Insurance
• Identify best suited local entrepreneurs to act as Business Correspondent Sub-
Agents (BCSAs)
– Convenient local access
– Able to arrange cash for one day business
– Trusted by local community
• Enable, Equip and Empower BCSAs to provide hassle-free service
– Technology installation, registration of BCSA with bank and setting up of the outlet
– BCSAs are trained to market various banking and payment services
13
Unique Business Correspondence Model
Savings
Credit
PensionInsurance
Bank Account Opening
(basic FI)
Mobile/DTH Top-ups/ Bill
payments
Electronic Remittance
Rural Digital Payments
(Agri, Dairy)
Merchant Payments
Farmer
A Range of Financial and Payment Services
offered through Mobile-enabled Technology
13 Bank Partnerships
A Wide Network of Agents
State No of outletsAndaman & Nicobar 5Andhra Pradesh 508Assam 85Bihar 31Chhattisgarh 291Goa 3Gujarat 44Haryana 67Jharkhand 11Karnataka 431Madhya Pradesh 148Maharashtra 218Meghalaya 7Mizoram 9Nagaland 2New Delhi 2Orissa 76Pondicherry 1Punjab 91Rajasthan 1274Sikkim 9Tamil Nadu 95Telangana 216Tripura 18Uttar Pradesh 246West Bengal 121Grand Total 4009
Technology Solutions
Portfolio Management System
Basix Portfolio
Management
System
Integration to Credit Bureaus
CRM
Loan Management
Financial Accounting
MIS – Portfolio Management
Modules
NEFT – Disbursements to
Customer Bank Account
Risk Management
GIS /Google Maps
Core Banking Design
Browser application for
Data entry
TechnologyAPIs
SQL Server
Oracle Database
.Net /Java
Mobile App for Field Transactions
Mobile Technology - State-of-the-art Distribution Channel for Financial Services
Famer group
formation
Efficient Loan Disbursement process
Capturing group and
Members information
in Basix LMS (Enrollment and Loan
Application)
Credit Bureau
check and Loan
approvals
Farmer withdraw loan amount
through Micro-ATM
Loan Disbursement
through Bank Transfer.
Credit to Farmer Bank
Account
Loan Officer
approaches
Farmer group
Loan Officer carries
mobile application
which works on
online and Offline
mode
Mobile app capable to
handle 20 to 30 group
collection with a single
entry transactions and
issue receipt thru
Bluetooth printer
Loan payment collection
SMS will be sent to the
customer’s Mobile as
proof of receipt of
payment
Mobile app send
collection details to
central server and real-
time updating of
customer records
Easy and Faster Loan Repayment Process
BINDAS enables to provide
insurance services with feasible
operation cost at rural locations
BINDAS integrated with
insurance companies cloud
applications to provide policies
and to process claims as real-
time transactions
Used at 4000 outlets across India
Farmers are covered with
weather index based Crop
Insurance
Number of policies processed
through BINDAS600,000
Total premium collected Rs. 180 Mn
Number of claims processed 120,000
Total claim amount received Rs. 72 Mn
BINDAS, Basix INsurance Distribution and Administration System
Enabling Technology Solutions for
Effective Loan Appraisal and Risk Management
CropLense
Soil Analysis Portal
Mobile Application Web Portal
Demo plot through VLE/
Govt Agencies/ SAUs /Research
centers
Group of Farmers
at a Time
Individual Farmers
A web portal for generating soil health
cards for farmers based on results
obtained from soil testing process
A software application will capture all
the details of soil test results and help
farmers get a readymade report on
Crop and Fertilizer recommendations,
using a robust recommendation engine
Report generated from the results of
soil test kit and Agro-Climate Zone -
Crop based ‘Recommendation Matrix’
Soil parameters such as PH, EC, N, P,
K other micronutrients and clay
percentage will be considered to
prepare the soil health reports
Soil Testing System
Farmer/Soil Details
Portal capture farmer
details, soil analysis
report and produce soil
health card which is
approved by Agricultural
experts
Soil Health Card
Broadcast voice call
/ SMS
.
.
.
.
.
.
.
.
.
.
FaRMTalk portal
FaRMTalk Box
Farmer 1
Farmer n
IVR
1. Sowing advisory
2. Pest management
3. Disease management
4. Weed management
5. Weather updates
6. Market prices
7. Schemes and Lucky draw
8. Demonstrations
9. Exhibitions
10. Greetings
11. Product launches
12. Buyer information
13. Sellers information
Reg
iste
red
u
sers
FaRMTalk*- Farmer Relationship Management Technology
* FaRMTalk – Product developed by iConcept Technology Solutions and partnered with Basix
Blank SMS
Missed callCall
Structured Farmer database in FaRMTalk
portal
Collect data
Call routing for language Load balancing Dropped call log
Upload
Portal
Farmer ID Farmer Name Mobile No. State District Taluka Village Crop Acreage (ac.)
MP101 Amol Mukund Roa 919441296620 Madyapradesh Indore Indore Aramghar Soybean 30
UP102 Amit Shanghvi 919440748465 Uttarpradesh Faizabad Faizabad Solanki Wheat 20
MP103 Amit Ghosh 919960844631 Madyapradesh Indore Indore Aramghar Soybean 12
MP104 Anil Panduranga 919440780171 Madyapradesh Indore Indore Aramghar Soybean 15
MP105 Ashwin Bhai 919676764676 Madyapradesh Indore Indore Aramghar Soybean 4
UP106 Bhagwanlal 919059260862 Uttarpradesh Faizabad Faizabad Kishanbhag Soybean 9
UP107 Dashran 919948784315 Uttarpradesh Faizabad Faizabad Kishanbhag Wheat 10
UP108 Pravinbhai Pansuriya919370645944 Uttarpradesh Faizabad Faizabad Kishanbhag Soybean 12
UP109 Ramkrishna Gorse 919979926119 Uttarpradesh Faizabad Faizabad Kishanbhag Soybean 14
MH110 Ravindra Deshmukh919423648585 Maharastra Aurangabad Aurangabad Sundarbhag Potato 24
MH111 Umesh D Borad 919703403870 Maharastra Aurangabad Aurangabad Sundarbhag Potato 12
MH112 Sudhir Chelar 919822936937 Maharastra Aurangabad Aurangabad Sundarbhag Soybean 10
FaRMTalk - Builds Farmer Database
Regional language
Enabled(voice calls)
Stay Connected with
Farmers,
Year round contact
programs
Targeted communication
Increase brand presence
Standardized messaging
FaRMTalk
Farmer
database
FaRMTalk Benefits
CropLense – A Mobile App for Expert Advise
• CropLense is a unique combination of mobile App and Online Forum
• Basix collaborated with iConcepts Global Technology Company, who has
developed this application
• Specifically made to share information or collaborate on queries related to
farming with various experts in the domain.
• CropLense is a field enablement tool that helps agri stakeholders
collaborate cost-effectively and with agility
• Mobile App helps the person on the field (farmer or field officer/VLE/ LRP )
capture high-resolution images of the crops that needs protection or
attention or for knowledge sharing, annotate the images with voice
messages, send it to an identified expert or a group, and then receive
comments, expert advice or solutions from farm consultants and
agricultural experts
CropLense – Process
31
CropLense in Field
Farmer reports problem from the field
Record / text the Problem
Field Officer shares the problemwith expert for solution or Farmer
reports directly to Experts
Expert diagnosis the problem and suggests solution (Via mobile or portal)
Experts sending solution to Field Officer or Farmer
Winning Formula for Successful Agri Lending
• Robust Core Banking Solution with Loan Management System and integrated Financial Accounting System – BankSoft
• Versatile technology for real time and fraud proof last mile delivery (application building, loan disbursement and repayment collection) – ViTran
• Strong MIS for Crop Insurance to enable efficient processing and tamper proof claim management - BINDAS
• Enabling technology solutions for effective farmer engagement, building farmer database, addressing farm level problems and ensuring productivity enhancement – FaRMTalk, CropLense, STP
• Automated credit scoring analytics solution that fetch data from all the above tools and generates usable data for enabling quick decision making on loan approvals – coming soon….!
[email protected]@basixindia.com
Thank You…
Let’s make millions of
farmers as ‘HAPPY
FARMERS’ with more
innovations….