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OCT-NOV 2022

Agri-credit system

Designing a credit system that helps avail loans with processed agriculture goods as collateral. Many farmers due to lack of collateral find it cumbersome to avail loans at a cheaper interest rate. The project tackles this problem area using the UMMCL model as a base.

Key words

Service design, finance, speculative design, system design

Project duration

8 weeks 

ummcl cover.png


What is the UMMCL model?

It is an innovative farming cooperative business model. In the UMMCL model rather than selling raw produce like alovera, it gives farmers, the opportunity to sell processed produce like alovera juice. This helps retain the shelf life of the produce but also gives better returns to the farmer.


To understand this better here is a comparison chart of the current agriculture model and UMMCL's model.

Current agriculture model

Share of farmer - 6rs per kg (many times even lesser due to manipulation)

Cost of alovera juice per litre - 400rs

  1. Punjab

  2. Rajasthan

  3. Jammu and Kashmir

  4. Ladakh

  5. Uttar Pradesh

  6. Himachal Pradesh

  7. Uttarakhand

  8. Haryana

Multistate cooperative
UMMCL model

Share to farmer - 20 Rs per kg

Cost of alovera juice per litre - 400rs

The UMMCL model includes many stakeholders like primary processors (people who process raw produce

into juice,oil,etc) and some secondary processors.

Problem areas

Waiting period
for UMMCL payment 

Farmers receiving payments from UMMCL often face a brief waiting period. During this time, they may need to secure a short-term crop loan to cover daily agricultural expenses such as buying seeds, fertilizers, and other small necessities.

Lack of collateral

Many farmers due to lack in collateral find it hard to access and avail loans at a cheaper interest rate. This leads to the systematic problem of reaching out to non-institutional credit.


Understanding the
agri-credit ecosystem

Understanding types of agricultural credit

Identifying information needed for a loan applying process

As of 2017 61% of agricultural households take institutional credit, and approximately 30% still take non- institutional credit at high interest rates.

Enable farmer's to get cheaper credit.​

​​Allow farmer's to have more autonomy over their finance.

What might we achieve?

​Make farmer's less vulnerable by providing collateral through the UMMCL system.

​Make more credit options available to Farmers.

Presenting the credit service

Online and offline hybrid model

Online loan application

Application sent to banks in location

Choose online or offline after approval

The credit service is only for short term agriculture loans such as crop loans. These loans are used to cover the day to day expenses of farming. The advantage of the UMMCL credit system is that the farmer gains a collateral he/she can pledge to the bank. This collateral is the processed agricultural produce (Groundnut oil, Alovera pulp) which the farmer owns and is stored by UMMCL.

Start here

The revenue model

Affiliate commission revenue model this is a model where UMMCL can charge a minimum commission from the bank for each customer they have gained for crop loan.

This can serve as another revenue stream for UMMCL as multiple streams will help build a sustainable business model.

A deeper look into online process

A storyboard of the offline process

Farmer chooses offline mode in UMMCL app.

Farmer enquires about loan application to bank employee.

Bank Employee gives the farmer loan documents for signing.

The farmer sees the bank address and decides to go to the bank next day.

Farmer shows Aadhar/ PAN card for identification.

Farmer goes to bank branch of the bank he chose.

Bank Employee prints documents.

Farmer signs loan documents. and he gets a copy of it.

Farmer receives message about loan being disbursement in a few days.

Speculative future

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