DigiFarm mavuno loan insurance cover

I have posted a couple of articles on DigiFarm. I have introduced what this program is as well as its potential benefits to farmers. In this blog post, I would like us to briefly talk about the DigiFarm Mavuno loan and insurance cover.

What is DigiFarm Mavuno Loan?

DigiFarm Mavuno Loan is a loan offered by Safaricom to qualified farmers through the DigiFarm Program. With DigiFarm Mavuno loans, the farmer can get farm inputs at the beginning of the season. DigiFarm allows farmers to repay their Mavuno loan in two ways. The first option is to pay bit by bit as the season progresses.

Alternatively, you can repay your Mavuno loan at the end of the season. Although this second option allows the loanee to use their farm produce to repay the loan, it is not a recommended approach to repaying Mavuno because of the potential difficulty with repaying the loan once especially if the harvest is not as was projected by the farmer.

Safaricom advises farmers to repay their loans little by little through the season and then clear the balance after selling the produce at the end of the season. However, before you take the DigiFarm Mavuno loan, the first question you probably need to ask yourself is: How much will I receive as a loan and how much will I repay?

Well, the amount of loan you can get from DigiFarm as a mavuno loan is dictated by the input package you’ll need per crop per acre. A monthly charge of 1.83% is charged as a facilitation fee. The fee is bundled with 15% insurance cover.

How is mavuno loan amount determined?

To know the amount of loan a farmer can get from DigiFarm as mavuno loan, you need to approach your DigiFarm Village Adviser or Master Agent. However, in general, two main factors determine the amount of Mavuno loan a farmer can get:

  • The size of the land on which the farmer will be farming
  • The input mix for the specific crop or value chain

If you would like to apply for a DigiFarm Mavuno loan, check my article How to Apply for DigiFarm Loan for guidance on the application procedure. If you already have the loan and wondering how to repay it, my other article on How to Repay Your DigiFarm Loan will help you.

What is DigiFarm Mavuno loan insurance cover?

DigiFarm Mavuno loan insurance cover is an insurance cover that provides protection to an agribusiness project that is funded through DigiFarm program. If you are a beneficiary of DigiFarm Mavuno loans, this insurance cover should be good news to you because it will cover your crops from excess rainfall, drought, and other natural calamities that could cause losses. It comes with

  • Free Life Assurance Cost with 50,000/- funeral benefit (last expense –that should not exceed the loan amount) to the main member.
  • Credit Life Cost at 0.05% of sum assured with a benefit of 100% loan upon permanent total Disability or Death of the main member.

How do you qualify for DigiFarm loan?

To qualify for a DigiFarm Mavuno loan, you must meet the following two conditions

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