Before you apply for DigiFarm loan, you’ll need to register to become a member of Safaricom DigiFarm. Note that DigiFarm loan or Mavuno loan, is a financial service extended only to farmers who are contracted to DigiFarm. So, to begin with, you must first off, register to DigiFarm and get contracted. I explained the registration process in my detailed article How Safaricom DigiFarm is Helping Farmers in Kenya: Everything You Need to Know About DigiFarm.
To access the loan, you will need to pay a percentage of the loan amount upfront. With your consent, Safaricom will automatically deduct the amount from your M-PESA account during your loan application process. There are two ways you can apply for DigiFarm loan:
Method #1: Application for DigiFarm loan via the DigiFarm App
This option is available for users who already have the DigiFarm app installed on their smartphones. You can follow this link to download and install DigiFarm App. With the application open, select “Loan” followed by “Apply for Loan.” You will be presented with a set on instructions to complete the application process.
Method #2: Application for DigiFarm Loan via USSD Code (*944#)
On your phone, dial *944# and follow the steps below
Select “Loans” and accept “Terms & Conditions” then go to “Apply for Loan.”
Like in the previous case, you will be presented with a set on instructions to complete the application process.
Finally, take note of the following two facts about DigiFarm loan
- Check-off process: DigiFarm Loans are subject to the check off process that allows Safaricom PLC to automatically deduct the loan value owed by the farmer/beneficiary once the farm produce is sold to DigiFarm at the end of the season.
- No cash loan: DigiFarm does not offer loans in liquid cash. Instead, farmers can only receive the loan amounts for which they qualify in terms of redeemable credit vouchers.
Increasing Your Loan Limit
Although DigiFarm’s loan offers are considerably low for newly registered farmers, the platform offers registered members the opportunity to grow their loans. As I already mentioned previously, the amount of loan you can receive from DigiFarm varies based on the size of land and the specific value chain for which you are contracted.
DigiFarm loan is meant to help farmers with acquiring farm inputs. With this initiative, you can also finance your farm operations including activities such as planting, weeding, harvesting, and winnowing.
Another factor that determines the loan amount you can receive from DigiFarm is your credit worthiness. This means that the more you’re likely to repay the loan, the higher the amount of loan you’ll get from DigiFarm.
You also have a chance to progressively increase your loan limit in three ways
- Repaying your loan on time.
- Consistently using DigiFarm and Safaricom services such as learning on the platform purchasing farm inputs from DigiFarm Farm Master Agent.
- Avoiding side selling. This helps you to maintain good a credit record.
In other words, complying with your contractual agreement with DigiFarm will help you to qualify for higher loan amounts in the future.
Moreover, if for some reason, you need additional loan before repaying your existing loan, you can top up. Just visit your nearest DigiFarm Master Agent to assist you with toping up your current DigiFarm Loan.
This article is part of my series of publications on DigiFarm. In my first blog post on this topic, which you can access here, I explained what Safaricom’s DigiFarm is; what is entails and how it works. I’ve also posted a short article on how to repay your DigiFarm loan. I consider DigiFarm one of the most valuable resources for Kenyan farmers. Therefore, I find it worth taking the time to write about this top both to explore and inform you about this digital technology. It’s my hope that the information I provide on this subject will enable those who can take advantage of it to grab the opportunity while it exists. Feel free to ask me any question on DigiFarm. Contact Us.