State Bank of India (SBI) and Citi have announced a $295 million (Rs 25,24,51,77,741.50) social credit facility to support small farmers in India.
This financial aid aims to help farmers improve their agricultural productivity and strengthen their financial position.
Helping Small Farmers with Loans
SBI will use this fund to support its Kisan Credit Card loan portfolio, ensuring that small farmers have access to the credit they need for farming activities.
Jayati Bansal, Deputy Managing Director (International Banking Group) at SBI, stated that the bank plans to use its vast network to reach small and marginal farmers.
These farmers are the backbone of India’s agriculture sector but often struggle to get financial support.
This initiative will improve their access to credit, enhance productivity, and promote sustainable livelihoods.
Challenges Faced by Small Farmers
Despite playing a crucial role in India’s agriculture sector, small farmers face financial and social difficulties.
Limited income and restricted access to credit make it hard for them to plan for the future, reducing their productivity and growth potential.
This credit facility aims to address these challenges by increasing agricultural output and income for these farmers.
Mayank Gupta, Asia South Head of Citi’s Business and Working Capital Solutions, emphasized that this agreement with SBI will enhance their business
and loan solutions for economic growth and social impact. SBI is committed to driving positive change through various initiatives that focus on environmental and social welfare.
The bank works towards financial inclusion by expanding banking services, promoting financial literacy, and increasing access to credit.
Globally, Citi has pledged $1 trillion for sustainable finance by 2030. It also aims to provide essential financial services to 15 million underprivileged families, including 10 million women, to improve their economic well-being.
