About the Feed the Future Innovation Lab for Markets, Risk & Resilience
The Feed the Future Innovation Lab for Markets, Risk & Resilience (MRR) at UC Davis develops and tests financial and market innovations that take the most promising agricultural tools for families in developing economies from the lab to the field. Visit our website for frequent updates on proven approaches to promoting sustainable development and resilience. Learn more
MRR Evidence Insight: Strengthening Microfinance Revenues and Growth by Addressing Smallholder Risk
While climate change increasingly threatens both smallholder livelihoods and the future of the microfinance sector, microfinance is uniquely positioned to grow by transforming how smallholder farmers manage risk.
A Contingent Line of Credit (CLOC) is a new financial instrument tailor-made for microfinance institutions and their smallholder clients. A large-scale trial in Bangladesh found that CLOCs strengthen the livelihoods of borrowers while increasing the revenues and stability of microfinance branches. This MRR Evidence Insight shows how a CLOC can be a powerful addition to a portfolio that charts a future of business growth. Read more
