XP Inc. continues to seek to expand its influence over economic agents and announced fintech DuAgro. The objective of creating this branch in Brazilian agribusiness arose to speed up the access of rural producers to credit lines designed specifically for the countryside.
The contract has the support of the securitization company VERT and DuAgro will function as an integrated platform for the financial and capital markets that uses innovative technology to promote financing for the purchase of agricultural inputs.
In a context of insufficient subsidized rural credit, the company will facilitate the availability of resources to farmers through industry and input distributors, guarantees XP, in a note.
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The focus of the business will be small and medium-sized producers, who account for 70% of the total production of Brazilian agriculture and livestock, but find it difficult to access credit, concentrated in the hands of large banks and agribusiness industries.
“DuAgro was born with the purpose of promoting this new agribusiness, committed to socioenvironmental responsibility and, therefore, able to access better rates in the green bond and ESG investors market,” said the company.
XP’s approach will be to adjust credit to rural producer demand. When he accesses the platform, his limit is already pre-approved in the purchase price. He just needs to confirm the registration data, upload the personal documents and electronically sign the financial CPR (Cédula de Produtos Rural – Financeira). No guarantees will be required, which guarantees the speed of the process.