In so doing, micro-agri loans today enjoy the same benefits as microfinance loans… including no collateral requirements, cash flow and character based lending, small and frequent amortizations, as well as simple documentary requirements. Through MAP, therefore, we have addressed the hurdle typically faced by small farmers when accessing financial services to grow their production and expand their economic activities.
Advances in technology are also providing new vehicles for the delivery of microfinance services. The use of mobile phones in select microfinance transactions is a specific example. Once again, our rural banks are at the forefront of this undertaking, developing a revolutionary solution for low value payments that characterize microfinance loans, through linkage with electronic cash platforms of telecommunication companies.