The State Bank of India (SBI) and Citi have announced a social loan facility of $295 million under Citi’s Trade & Working Capital Solutions, aimed at supporting smallholder farmers in India.
The facility will be used to finance SBI’s Kisan Credit Card (KCC) loan portfolio. It aims to meet the credit needs of the agricultural sector, specifically smallholder farmers.
Key Objectives
- Enhance agricultural productivity by ensuring timely access to credit.
- Improve the financial well-being of small farmers.
- Promote economic inclusion and income generation for underserved rural communities.
Need for the Initiative
- Smallholder farmers often face limited income and restricted access to formal credit
- These limitations hamper their ability to plan long-term, invest in farming operations, and participate fully in the economy.
Expected Impact
- Improved access to institutional finance for small farmers.
- Better ability to plan, invest, and increase productivity.
- Enhanced livelihoods, contributing to the goal of inclusive and sustainable rural development.