To support India's smallholder farmers, State Bank of India (SBI) and Citi announced a $295 million social loan facility on Thursday.
The funds are specifically designed to help smallholder farmers in India improve their financial stability and agricultural productivity, the banks said in a statement.
The facility will be used by SBI to fund its portfolio of Kisan Credit Card loans, which will assist in addressing the credit requirements of the agricultural industry, especially smallholder farmers.
According to Jayati Bansal, Dy Managing Director (International Banking Group), SBI, "We aim to reach small and marginal farmers who are at the core of India's agriculture sector but often lack access to essential credit resources" with the aid of our extensive network."
"By facilitating their access to financing, this program will enable these farmers to become more productive and create sustainable livelihoods. We at SBI think that supporting the marginalized farming community is essential to bolstering rural economies and advancing sustainable economic inclusion," Bansal said.
Despite facing numerous social and economic obstacles, smallholder farmers comprise a substantial share of India's agricultural industry.
Limited income and credit access impede their ability to plan for long-term needs, limiting productivity and growth and excluding them from the larger economy.
This facility aims to improve agricultural production and income generation by increasing credit access, thereby contributing to livelihood enhancements and promoting economic inclusion in this underserved community.
Citi's Asia South Head of Trade and Working Capital Solutions, Mayank Gupta, stated that the agreement with SBI will leverage "the depth of our trade and working capital loan solutions to unlock positive social impact and economic growth."
Through a range of programs encompassing its operations, goods, and services that give social and environmental issues top priority, SBI is actively promoting positive change. By promoting financial inclusion, expanding access to banking services, and enhancing financial literacy, it benefits the community.
By 2030, Citi has pledged to invest $1 trillion globally in sustainable finance and increase access to essential services for 15 million low-income and underserved households, including 10 million women.
