To improve the agricultural lending capacity of the financial sector, Frankfurt School of Finance & Management has developed an innovative scoring model, “Agricultural Loan Evaluation System (ALES)” for loan assessment of clients from the agriculture sector. The tool serves as an income projection as well as a comprehensive risk assessment model for farmers/agricultural enterprises and can be adapted to various countries.


  • ALES is an innovative agricultural scoring model based on gross margin projections, agricultural production parameters and a risk analysis of the farming enterprise;

  • ALES supports financial institutions’ staff with little or no agricultural knowledge in the decision making process and in processing loan applications of farmers / producers;

  • ALES allows for effective time and risk management for agricultural lending by significantly reducing the time for agricultural loan assesment and loan default ratio by assigning loan limits not more than the needs and repayment capacity of farmers;

  • ALES is an ideal solution for farmers/agricultural enterprises involved in diverse agricultural activities;

  • ALES is a comprehensive risk assessment tool combining lending expertise with a strong agricultural component;

  • ALES is a tailor-made solution specific for the region and the financial institution concerned.


AZAFF consultant team works extensively on development of ALES for Azerbaijan – AzALES in line with the specificities of the country. In AzALES, Azerbaijan is divided into 9 sub-regions according to geographical location, crop diversity, regional development plans, climate and flora. AZAFF consultants are travelling to these regions to collect agricultural data (i.e. average yield, selling price, working capital requirement, production processes and related costs, etc.) for the purpose of creation of agricultural tech-cards which form the main basis of AzALES database.

Regional agricultural tech-cards combined with quality and productivity questionnaires and an analysis of agricultural and non-agricultural income in AzALES produce a quick output including working capital requirement, gross/net profit per activity, farming score, approved credit limit and loan maturity suggestion.


Our Partners

The technical assistance funds of the project are provided by the EU Neighborhood Investment Facility.

This project is financed by the European Bank of Reconstruction and Development (EBRD).

The technical assistance services within the project are provided by Frankfurt School of Finance and Management.