Mumbai: State Bank of India (SBI) and Citi on Thursday announced a social loan facility of $295 million to support smallholder farmers in India.
The financing is specifically directed towards smallholder farmers in India, to support them to improve their agricultural productivity, enhancing their financial well-being, the banks said in a statement.
The SBI will utilise the facility to finance its Kisan Credit Card loan portfolio, to help meet the credit requirements of the agricultural sector, and within this, smallholder farmers.
Jayati Bansal, Dy Managing Director (International Banking Group), SBI, said that leveraging our extensive network, “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”.
“This initiative will empower these farmers by enhancing their access to financing, helping them improve productivity and create sustainable livelihoods. At SBI, we believe that supporting the underserved farming community is key to strengthening rural economies and fostering long-term economic inclusion,” said Bansal.
Smallholder farmers contribute a significant segment of India’s agricultural sector, yet face pronounced social and economic difficulties.
Limited income and restricted access to credit hinder their ability to plan for long-term needs, often restricting their productivity, growth, and excluding them from the wider economy.
By enhancing access to credit, this facility aims to foster their agricultural production and income-generation, thereby contributing towards livelihood enhancements and promoting economic inclusion for this underserved community.
Mayank Gupta, Asia South Head of Trade and Working Capital Solutions, Citi said that this agreement with SBI will utilise “the depth of our trade and working capital loan solutions to unlock positive social impact and economic growth.”
The SBI is actively driving positive change through various initiatives across its operations, products, and services that prioritise environmental and social causes. It supports its community by expanding access to banking services, promoting financial inclusion, and enhancing financial literacy.
Globally, Citi has committed USD$1 trillion to sustainable finance by 2030 and expanding access to basic services for 15 million underserved and low-income households, including 10 million women.
(IANS)
