A tool applicable to the payment of credits for projects of agricultural crops with different income levels

Abstract

Traditionally, the banking sector has not accounted for the temporary loss in a customer's income, at any stage of the credit life, caused by the changes or the loss of employment, income drops in business, the establishment and development of new projects of agricultural crops with diff erent income levels, or other contingencies that can arise in the today's economy. To address this problem, the present study constructs a phased model of one mother equation, from which a series of equations of fi nancial mathematics are derived as a response to several needs of credit benefi ciaries. Th e proposed model consists of one scenario, based on a mother equation. Th e scenario corresponds to credits with reduced or increasing payment instalments, postponable payment periods. Of the mother equation, 8 explicative variables were solved for a total of 9 phasing formulas for credits with three levels of payment. Our model, in contrast to the traditional one, incorporates postponable payment periods and jumps in payment instalments in any period of the lifetime of the credit due to a temporary loss in the customer's income and changes in the credit user's income.