In a significant move aimed at empowering small farmers in India, State Bank of India (SBI) and Citi have announced a $295 million (approximately ₹25,245 crore) social credit facility.
This initiative is designed to help small farmers by providing them with the financial resources they need to improve their agricultural productivity and achieve financial stability.
Key Highlights of the Loan Facility:
Target Group: The facility is specifically targeted at small farmers in India, who often face challenges in accessing credit for their farming activities.
Purpose of the Loan:
The financing will be used to support SBI’s Kisan Credit Card (KCC) loan portfolio, which provides accessible loans to farmers for their agricultural needs.
SBI’s network will play a crucial role in reaching small and marginal farmers, who are at the core of India’s agricultural sector but have limited access to financial resources.
Empowering Small Farmers:
Jayati Bansal, Deputy Managing Director of SBI (International Banking Group), emphasized that this initiative would enable small farmers to access financing that will improve their productivity, enhance sustainability, and increase their economic empowerment.
The goal is to address the challenges of limited income and access to loans, which restrict the growth and productivity of many farmers, often excluding them from larger economic opportunities.
Benefits for Agriculture Sector:
The partnership aims to enhance agricultural production and boost farmers’ income generation, making them more financially secure and integrated into the broader economy.
Citi’s Role and Commitment:
Mayank Gupta, Citi’s Asia South Head of Business and Working Capital Solutions, highlighted that this partnership with SBI would further strengthen their focus on social impact and economic development.
By offering working capital solutions to small farmers, Citi aims to support positive change through financial services.
Citi also noted its global commitment of US$1 trillion for sustainable finance by 2030, alongside efforts to expand access to basic services for 15 million underserved and low-income families, including 10 million women.
A Step Toward Financial Inclusion:
The collaboration between SBI and Citi is a significant step in improving financial inclusion for India’s small farmers, who often struggle to meet their credit needs.
By providing easier access to loans, this initiative will help farmers not only increase their productivity but also secure their livelihoods in a sustainable manner.
This announcement is a positive development for the agricultural sector in India, offering a much-needed financial boost to the farmers who form the backbone of the nation’s economy.
With the backing of two major financial institutions, this social credit facility is set to make a meaningful difference in the lives of many small-scale farmers across the country.
