Developing a New Product: Rural Mortgage


The cooperation between Farm Credit Armenia and European Fund for Southeast Europe (EFSE) started with technical assistance for developing new products: rural mortgage, housing and renovation loans. The project started from the end of 2013 and will be finished on April, 2014.  The project is conducted in several stages. During the period of November-December, 2013, the first stage of the project, market research and legal framework research was initiated. Senior consultant of BFC Aliona Bevzuic started conducting regular coaching sessions with FCA senior team on different topics, such as strategy evaluation, reviewing existing lending practices and procedures, design of housing products, piloting and marketing them. During the second stage of the project, from13 – 21, 2014, Aliona Bevzuic has onsite conducted two seminars for credit experts and senior management of the Farm Credit Team. The main goal of the training was to contribute to development of the housing products by means of seminars, meetings and brainstorming sessions. The main topics of the discussions were: cross checking housing and business products; efficiency: connection between three reports; customer focus; customer acquisition; first contact with the client, as well as strategy of design and implementation of housing products. The main achievements of the field visit included successfully conducted seminars for credit experts and senior management of FCA, working meetings and negotiations, approval of the design of final products, additional services and elaboration of strategies of housing loan products promotion. During the third stage of the project, the product design is implemented featuring the pricing, terms, maturity etc. In the final stage of the project, implementation of pilot crediting is planned.  One of the conclusions made by BFC is that Farm Credit has a very professional and qualified staff with an advanced experience and knowledge in credit technologies. The staff members of the Farm Credit have advanced banking experience and regularly participate in additional trainings and study tours. Also, BFC supports the initiatives of Farm Credit to introduce the social orientation to the housing products. Adhering to its philosophy to support the development of rural Armenia, Farm Credit is enlarging its product range and soon we will offer rural mortgage and housing credits to our member-stockholders. Later, FCA tends to reach at least 20% of the total portfolio with this product in rural regions.

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