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    Agri enterprise Samunnati enters into co-lending partnership aimed at the FPO space

    Synopsis

    SBI and Samunnati has also entered into a non-financial MOU to develop the FPO sector, to mainstream FPO as an asset class and increase awareness of this class of farmer-owned institutions in the Banking sector.

    SamunnatiAgencies
    Agri enterprise Samunnati has entered into a co-lending partnership aimed at the Farmer Producer Organization (FPO) space with State Bank of India (SBI). The initial programme amount is Rs 100 crore.

    This partnership will enable Samunnati to scale its outreach to FPOs with customized financial solutions at affordable interest rates, leveraging the vast resources available with SBI. The partnership will enhance the outreach for SBI channel credit to the under-served segment of small-holder farmers in the agriculture sector, by leveraging Samunnati’s outreach and nuanced understanding of the FPO sector.

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    SBI and Samunnati has also entered into a non-financial MOU to develop the FPO sector, to mainstream FPO as an asset class and increase awareness of this class of farmer-owned institutions in the Banking sector.

    Samunnati works with a growing network of 3000+ Farmer Collectives with a member base of over 6 million farmers with solutions spanning Agri Finance, Agri Commerce, and advisory services.

    Speaking to the Founder & CEO of Samunnati, Mr. Anil Kumar SG said, “We are delighted to partner with SBI, the largest and most trustworthy brand in Indian Banking. SBI’s pan-India presence and deep interest in Financial Inclusion of the small-holder farmers are enablers for helping an FPO avail an array of financial services. Our collective ambition is to make markets work for smallholder farmers by making available adequate, affordable and timely credit to the FPOs.”

    In November 2020, the Reserve Bank of India (RBI) issued guidelines on Co-Lending Model between Scheduled Commercial Banks and NBFCs. SBI is one among the first Banks to participate in a co-lending program aimed at mainstreaming FPOs as an asset class.

    Mr. Sree Rama Charyulu M, GM, NBFC Alliances from SBI said “We see an immense possibility in this partnership for impacting the agri ecosystem. Focus of Samunnati in creating an impact in FPO space is of extreme relevance & we believe there is significant rural business opportunity hidden within such farmer collectives. SBI would like to create a strong foothold in this space by leveraging on partnership tie ups, on one hand, for customer reach while extending superior finance product designing capabilities of SBI to our partners. This will create synergies at operational level.




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