Samunnati signs co-lending partnership with IndusInd Bank

CHENNAI: Agri value chain financier

Samunnati

has entered into a co-lending agreement with

IndusInd Bank

to expand credit accessibility and market linkages for farmer producer organisations (FPOs) across the country.

This collaboration will provide Rs 150 million as an initial amount to be disbursed exclusively to farmer collectives. The primary aim is to ensure the self-sustainability and profitability of farmer collectives and their members, comprising mostly small-holder farmers.

"This strategic alliance will enable easy access to working capital to Samunnati’s growing network of 1,500 farmer collectives with a member base of six million farmers," the company said in a statement.

“Our collective goal with this alliance is to improve the flow of credit to the underserved agri community at an affordable cost, by leveraging the dual advantage of funds at a lower cost and Samunnati’s extensive

FPO

network," Anil Kumar SG, founder and CEO, Samunnati, said.

In November 2020, the Reserve Bank of India (RBI) issued guidelines on co-lending model between scheduled commercial banks and NBFCs. IndusInd Bank is among the first scheduled commercial banks to participate in such a co-lending program aimed at mainstreaming FPOs as an asset class.