- Loan Successfully Funded On 5 Dec 2023 and Fully Repaid
BREAD (Building Resilience and Empowerment for Agricultural Development)
Tun Yat
- Singapore
Menu
- 46,700 USD
Loan has been fully repaid
This loan supports small-holder farmers in Myanmar to access a credit purchase program for farming inputs. These include land preparation, tilling and harvesting, and application of inputs (fertiliser, seeds) for rice planting seasons. The funds pay input suppliers first, which are repaid after farmers harvest their crops, with 30% of these women. After repayment, farmers can re-use the funds as a revolving fund, to re-plant for the next season, generating more local capital for farming needs.
- 6 Lenders
Committed
- 3 months
Loan Period
- 10%
Interest Rate
- BACKGROUND
Loan summary
Tun Yat has been working closely with farmers in Myanmar since 2017, providing a Farming-As-A-Service Model, linking farmers to inputs (seeds, fertiliser, urea, machines, MFI finance), including aggregation, crop-buying, warehousing. They also provide a match-making service, via an online Facebook Platform linked to a hotline phone number for farmers to call and order service and for machine owners to connect their machines with for tilling and harvesting orders. Tun Yat also has a Chatbot for farmer education on financial inclusion and other farming topics, linking to loan providers for credit profiling which is now being tested via an app service.
Borrower's mission
Since 2017, Tun Yat has continued to build their customer base from 500 paying farmers (2018) to 2000 (2019), and 10,000 (2020). By June 2024, the next cohort of 42,000 farmers across a network of villages will be onboarded to its new platform. This impact loan via LendForGood provides working capital and continuity towards paying seed, fertiliser and agri-machinery suppliers connected to the village inputs credit voucher program for farmers in Myanmar.
Due to a 30% rise in the price of inputs in the last year, farmers face liquidity constraints and need more credit voucher programs to address negative coping strategies. This aligns with Tun Yat’s mission to increase incomes for small-holder farmers as Tun Yat waits for major grant capital to extend the program for the next 3 years, with an aim to mobilise 100,000 farmers (500,000 farming families).
The activities funded by this loan are helping to achieve the above Sustainable Development Goals as defined by the UN.
Intermediary's experience with impact enterprises
For more than 8 years, Red Hat Impact has helped impact enterprises by raising capital and providing other kinds of business and strategy support. We have raised more than $3M from our network of impact investors, and loaned this capital to support 30 enterprises. We use a crowd-lending model to raise loan capital. As of May 2024, we maintain a 98% success rate on loan repayment. We establish close working relationships with all of the impact enterprises we raise debt capital for, and co-manage risks with them during the loan term.
- IMPACT
Impacts and how they are measured
Tun Yat supports small holder farmers in Myanmar through the rental of high grade affordable farm machinery through a farmer friendly online service, and the provision of farming inputs such as seeds and fertilisers through a credit voucher program. Utilising technology such as tractors to plough and level rice fields – in contrast to traditional buffalo that requires strenuous physical effort and time, and results in uneven land – ensure that water distribution across rice fields is even, which in turn increases the absorption of fertilisers (and reduction of usage) and the uptake of rice seeds and other crops. Tun Yat’s support increases income for small and medium-size farmers, and reduces outputs like time savings in harvesting, yield wastage reductions and how farmers use less resources through a mechanisation service.
Ready to lend?
This loan is not currently accepting subscriptions, but we invite you to check out some of the other live loans on the platform. In order to participate in loans you must be a registered lender on the LendForGood platform. If this is your first time lending with us we’ll guide you through the process to first get registered. Thank you for lending your passion!