Development of Agricultural Loan Product

This market study was commissioned by MED-Net, an affiliate of World Vision – Uganda, to help deepen its outreach by developing customer-oriented products for the agricultural sector in Uganda.Most financial institutions have not targeted the agricultural sector in Uganda because they see it as a risky segment. MED-Net felt the need to develop a product that catered to the needs and preferences of agricultural communities. It, therefore, conducted market research to develop an initial product concept that would be refined into a pilot testing prototype. The market research also assessed:

• Clients needs and preferences;
• Current coping mechanisms;
• Potential for an agricultural loan product.

Qualitative research methods, such as focus group discussions, were used to conduct the study. Given the different problems characteristic of the sector, MED-Net needs a well-designed product delivered in a way that will benefit the agricultural sector. Other important considerations include sensitization on the product offering, delivering the product via group mechanisms, client motivation and improving information sharing between MED-Net and area development programs.