Small farmers do not usually have sufficient funds to adopt many modern technologies such as improved varieties and packaging. They remain heavily reliant on informal credit—relatives and friends, the middlemen or input suppliers. This 12 page chapter summarises the current status of agricultural credit schemes for smallholders (including branchless banking, E-credit, microcredit as well as insurance). It also notes the constraints to inclusion, including low general and financial literacy of small farmers, transaction costs, lack of collateral and lack of suitable credit for women. 2019
This topic has been analysed in further detail by the Credit Policy project.