It will now be easier for small farmers in the country to take a loan, SBI and Citi made this big announcement.

State Bank of India (SBI) and Citi on Thursday announced a $295 million (Rs 25,24,51,77,741.50) Social Credit facility to support small farmers in India, so that small farmers can get help.

State Bank of India (SBI) and Citi on Thursday announced a $295 million (Rs 25,24,51,77,741.50) Social Credit facility to support small farmers in India. The banks said in a statement that this financing is specifically for small farmers in India, to help them improve their agricultural productivity and become financially strong.

Small farmers' loan needs will be met

SBI will use this facility to finance its Kisan Credit Card loan portfolio to meet the loan needs of the agriculture sector and small farmers under it. SBI Deputy Managing Director (International Banking Group) Jayati Bansal 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 do not have access to the necessary credit resources. Bansal said, "This initiative will increase access to financing and empower these farmers, helping them improve productivity and build sustainable livelihoods.

Loan problems affect the ability of small farmers

Bansal said that small farmers contribute significantly to India's agriculture sector, yet they face social and economic difficulties. Limited income and limited access to loans affect their ability to plan for long-term needs, often limiting their productivity and growth and excluding them from the broader economy. The aim of this facility is to boost agricultural production and income-generation of these farmers.

Mayank Gupta, Asia South Head of Citi's Business and Working Capital Solutions, said that this agreement with SBI will deeply use our business and working capital loan solutions for positive social impact and economic development. SBI is actively pursuing positive change through various initiatives in its operations, products and services that prioritize environmental and social causes. It supports its community by expanding access to banking services, promoting financial inclusion, and increasing financial literacy. Globally, Citi has committed US$1 trillion to sustainable finance by 2030 and expanding access to basic services for 15 million disadvantaged and low-income families, including 10 million women.