To fund FPOs, Samunnati in co-lending pact with IndusInd Bank

Samunnati has entered into a co-lending agreement with IndusInd Bank to broaden credit rating accessibility for farmer producer organisations (FPOs) throughout the state. This collaboration will offer ₹15 crore as an original amount of money disbursed to farmers collectives. The key goal is to ensure the self-sustainability and profitability of Farmer Collectives and their users, comprising primarily smaller-holder farmers, Samunnati claimed in a assertion.

This strategic alliance will empower quick accessibility to working money to Samunnati’s escalating network of one,500 Farmer Collectives with a member foundation of six million farmers.

“Our collective aim with this alliance is to enhance the flow of credit rating to the underserved agri community at an very affordable cost, by leveraging the dual benefit of money at a lessen cost and Samunnati’s extensive FPO network,” claimed Anil Kumar SG, Founder and CEO, Samunnati.

In November 2020, the Reserve Bank of India (RBI) issued pointers on Co-Lending Model concerning Scheduled Commercial Banks and NBFCs. IndusInd Bank is between the initially scheduled commercial banks to participate in a co-lending application aimed at mainstreaming FPOs as an asset course.

Srinivas Bonam from IndusInd Bank claimed, “We see advantage in FPOs as it is a finest-match model to help farmers go after agriculture in a extra efficient and organised manner. This collaboration is in line with the Bank’s approach to provide effective and inclusive lending remedies. We seem ahead to effectively pilot Co-lending to FPO’s and choose it to further levels of influence as we development in this partnership”.