Bundling cash loans with agricultural input loans for farmers in Nigeria: A pilot study
Credit allows borrowers to access funds required to make an investment before returns materialize. For smallholder farmers, who must invest in agricultural inputs (i.e., seeds, chemicals, equipment, land, and labor) during the planting season before earning income from the sale of agricultural produce after harvest, credit helps alleviate liquidity constraints and promotes the ability of local agricultural production to support nutrition and food security. In rural Nigeria, access to credit—especially formal credit from financial institutions—is limited.