As part of leveraging digitization to benefit its dairy value chain, Nestlé Pakistan has joined hands with Telenor Microfinance Bank (previously known as Tameer Bank) as the first FMCG to facilitate its dairy farmer base through the provision of digital micro-finance lending.
Under this program, Telenor Bank has been disbursing loans to dairy farmers digitally. The bank has pioneered one of the country’s first data driven digital method in deciding the loan limits with near instant loans. Hence, the loans are disbursed directly to the farmers via Telenor Bank’s mobile banking platform, Easypaisa mobile wallets. Under this program, Telenor Bank has disbursed PKR 7.5 million via digital means to dairy farmers supplying milk to Nestlé Pakistan.
This form of lending has paved the way for easy and affordable access to finance for dairy farmers in rural areas with limited outreach of financial services, and has also supported farmers in improving their financial sustainability. Digital lending has replaced standard paper and cash-flow based application procedures and instead uses digital credit score card and analytics, thus considerably reducing the loan approval turnaround time. This also minimizes the tedious paperwork associated in obtaining loans and ensures that the farmers get access to funds in a safe and convenient manner.
“By leveraging digital expertise, we have been able to extend lending through digital means to our dairy farmers, which initially did not have access to basic financial services. This is a remarkable achievement in our journey of financial inclusion and will contribute greatly towards their financial sustainability,” said John Michael Davis, Chief Financial Officer of Nestlé Pakistan.
Speaking at the occasion, Chief Financial Inclusion Officer and Chief Digital Officer at Telenor Microfinance Bank, Yahya Khan said “We are proud to get into this first of its kind partnership with Nestlé. We share a mutual desire to promote digitization – be it in digital disbursement of dairy farmers’ milk payments or the pioneering use of analytics and digital credit score card to enable them to enhance their milk supplies by the use of affordable digital instant micro-finance loans. Our common mission is to promote instant and affordable digital micro-finance credit.”
Moreover; Adnan Hassan – VP Circle East – Telenor Pakistan said ““Telenor Pakistan in partnership with Telenor Bank & Nestlé Pakistan introduce another first – instant micro-financing for the dairy farmers providing healthy and fresh milk, through a score/performance based lending structure, to enhance our financial inclusion objective.”