📘 Farmer-credit-&-bnpl – Legal FAQs

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❓ What is BNPL for farmers?

Buy Now Pay Later (BNPL) allows farmers to purchase agri inputs like seeds, fertilizers, or equipment on credit and pay later after harvest.

❓ How does it work?

Farmers select products on agri platforms, opt for BNPL at checkout, and repay after a set period, often post-harvest.

❓ Do farmers need credit history?

Some platforms use alternative credit scoring based on farm size, past purchases, or crop history instead of traditional credit scores.

❓ Is interest charged on BNPL?

Some platforms offer interest-free periods; others may charge low interest or processing fees after a grace period.

❓ What happens if a farmer defaults?

Late fees may apply, and future access to credit may be restricted. Some platforms offer crop insurance to mitigate risk.

❓ Is the process digital?

Yes, most providers offer paperless onboarding, mobile-based KYC, and repayment reminders via SMS or app notifications.

❓ How can startups offer credit safely?

They partner with NBFCs, use AI-based risk scoring, and integrate repayment with supply chain and produce sales systems.