This course introduces the concept of Exposure to Small & Marginal Farmers within the Tractor & Farm Equipment Credit framework. It focuses on understanding the differentiated risk considerations associated with lending to small and marginal farmers, particularly in the context of limited landholdings, income volatility, and higher sensitivity to external shocks.
Learners will explore key assessment dimensions such as demographic characteristics, succession-related risks, segment-specific vulnerabilities, and relationship-driven factors that influence repayment behaviour, with an emphasis on independent validation and well-documented rationale. The course highlights how constraints such as limited diversification, dependence on seasonal income, and weaker financial buffers can elevate credit risk in this segment. It also distinguishes exposure to small and marginal farmers from broader portfolio diversification strategies, emphasizing its role in assessing borrower-segment-specific risks rather than managing portfolio-level allocation.
By the end of the course, participants will understand how to evaluate risks associated with this segment in practice, particularly within Borrower Risk Profiling and Relationship Risk. The course also emphasizes the role of the senior credit leader in setting portfolio limits, governing exception criteria, and ensuring strategic alignment across the Tractor & Farm Equipment Credit function, including oversight of segment-based risk adjustments, documentation standards, exception handling, and escalation protocols aligned with credit committee priorities.