Credit application systems for investments in agriculture and livestock in rural areas in Latin America

Abstract

A lack of resources to improve inputs and tools is the fundamental cause of the lack of food security, according to families and organizations interviewed in marginalized and isolated communities (MICs) in Latin America. Families living in these types of communities have access to inputs either through donations or through credits. Marginalization and isolation tend to favor opting for credits because it becomes imperative to be able to rely on sustainable interventions, due to the little attention that these types of communities receive from government offices and development cooperation agencies. Among the methodologies for accessing credits in MICs, special mention should be made of credit lines, solidarity group programs (SGPs), and local financial structures (LFSs) or community banks. The analysis performed herein concludes that LFSs or community banks yield the best results.