SBI and Citi Launch $295 Million Loan Initiative to Empower Smallholder Farmers in India

Mumbai, April 3 (NationPress) The State Bank of India (SBI) and Citi have jointly introduced a $295 million social loan initiative aimed at empowering smallholder farmers throughout India.

This funding is expressly aimed at aiding smallholder farmers in India, enabling them to enhance their agricultural productivity and improve their financial stability, according to a statement from the banks.

SBI plans to use this facility to back its Kisan Credit Card loan offerings, which are designed to meet the borrowing needs of the agricultural sector, particularly focusing on smallholder farmers.

According to Jayati Bansal, Deputy Managing Director of the International Banking Group at SBI, "By leveraging our extensive network, we strive to reach small and marginal farmers who are central to India’s agricultural landscape but frequently face challenges in accessing vital credit resources."

“This initiative will empower these farmers by enhancing their access to financing, thus helping them boost productivity and establish sustainable livelihoods. At SBI, we believe that supporting the underserved farming community is crucial for reinforcing rural economies and promoting long-term economic inclusion,” added Bansal.

Smallholder farmers represent a substantial portion of India's agricultural sector, yet they encounter significant social and economic challenges.

Low income and limited access to credit impede their ability to plan for future needs, often curtailing their productivity, growth potential, and integration into the broader economy.

By improving access to credit, this initiative aims to enhance their agricultural output and income, thereby contributing to better livelihoods and advancing economic inclusion for this disadvantaged community.

Mayank Gupta, Asia South Head of Trade and Working Capital Solutions at Citi, stated that this partnership with SBI will harness “the depth of our trade and working capital loan solutions to unlock positive social impact and foster economic growth.”

SBI is actively promoting positive change through various initiatives across its operations, products, and services that prioritize environmental and social issues. The bank supports its community by broadening access to banking services, promoting financial inclusion, and enhancing financial literacy.

On a global scale, Citi has pledged USD $1 trillion towards sustainable finance by 2030, with a focus on expanding access to essential services for 15 million underserved and low-income households, including 10 million women.