SBI and Citi Unite for Transformative Social Loan Scheme in Agriculture

The State Bank of India (SBI) and Citi have partnered in a $295 million social loan facility aimed at supporting smallholder farmers in India. This initiative provides crucial financial resources enabling farmers to enhance productivity and improve their livelihoods through SBI's Kisan Credit Card loans.

In a significant move, the State Bank of India (SBI) announced a partnership with Citi to extend over USD 295 million in loans targeted at India's smallholder farmers. The collaboration, termed as a 'social loan facility,' aims to bolster financial inclusion and support the agricultural sector's backbone.

The funding, derived from Citi's trade and working capital solutions, aligns with its USD 1 trillion commitment to sustainable finance. By directing these resources to India, the initiative intends to augment agricultural productivity and financial stability for small-scale farmers.

Highlighting the scheme's impact, SBI's Deputy Managing Director, Jayati Bansal, emphasized the bank's goal to extend essential credit resources through its expansive network. Similarly, Mayank Gupta from Citi underscored unlocking social impact and economic growth. The facility seeks to address the systemic challenges faced by smallholder farmers, providing a foundation for long-term planning and development.

(With inputs from agencies.)