Report on Parallel Session D

Required terms and conditions of credit facilities for biogas

households and MFIs

What are the appropriate terms and conditions of credit for households?
Low interest rates (<10% flat) and longer tenor (> 2 years or include refinancing possibility) Appropriate collateral for MFI and Client: biogas product plant as collateral, insurance, household fixed revenue.

Appropriate identification of the household revenue

streams.

What are the appropriate terms and conditions of credit for MFIs?

Specific funding : biogas-friendly investor, appropriate funding to suit the MFIs business plan.

Subsidized interest rates to accompany sector

development Local currency

What are the lessons learned on credit?

Quality checks to be done by external party, but MFI must also ensure proper training of clients. After Sales Service is key to ensure repayment: proper coordination needed with national biogas program.

Subsidy is crucial, but fraud management is key.

Repayment of the credit must come from additional income/savings.

What are the necessary TA requirements?

HR technical training to assess biogas project. Feasibility studies and product development. Quality assessment for biogas plants through external party and M&E Support coordination efforts

Any other important result/message

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