Potential Loan Analysis Software
for Credit Unions in Ukraine
Loan Analysis & Monitoring of Rural Farmers’ Credit Worthiness - Potential Analytic Software for Credit Union (Ukraine)
A core element of the lending process and portfolio management is the assessment of the creditworthiness of potential borrowers, including the efficient analysis of the borrowers’ ability to repay debt. Since 2016, credit unions in WOCCU’s USAID/Ukraine’s Credit for Agriculture Producers (CAP) project have been exploring various digital tools to inform credit decisions and effective loan monitoring for selected credit unions that focus on agricultural lending expansion.
First, we tested a Ukrainian-built software for online loan assessment; the initial pilot group of loans were disbursed to farmers for a total of 2 million Ukrainian hryvnia (US $75,000) through central credit unions and their regional branches. Unfortunately, the tool was not affordable for the credit unions at the time.
WOCCU is also cooperating with IFC's “Agrarian Receipts Project” in Ukraine, that allows farmers that work with the receipts to use IFC's tested tool “CLARA” that is being adapted to multi-crop smallholder agricultural production. WOCCU's project is discussing the possibility for testing of the tool by participating CUs. CLARA is a tool to quickly and efficiently assess production risks in agriculture. The service helps to make predictive calculations for farms based on production flow charts for various agricultural products.