Mumbai: The State Bank of India (SBI) and Citi have announced a social loan initiative amounting to $295 million aimed at supporting smallholder farmers in India.
This funding is specifically designed to enhance agricultural productivity and improve the financial health of smallholder farmers, as stated in a joint announcement from the banks.
SBI plans to utilize the facility to finance its Kisan Credit Card loan portfolio, addressing the credit needs of the agricultural sector, particularly for smallholder farmers.
Jayati Bansal, Deputy Managing Director of SBI’s International Banking Group, expressed that by leveraging its extensive network, the bank aims to reach small and marginal farmers—those who are essential to India’s agriculture yet often lack access to vital credit resources.
“This initiative will enhance these farmers’ access to financing, thereby improving productivity and fostering sustainable livelihoods. At SBI, we recognize that supporting the underserved farming community is crucial for strengthening rural economies and promoting long-term economic inclusion,” Bansal stated.
Smallholder farmers represent a critical segment of India’s agricultural landscape but often face significant economic and social challenges. Their limited income and restricted access to credit hinder their ability to plan long-term, stifling their productivity and growth, and excluding them from the broader economy.
By improving access to credit, this loan facility aims to bolster agricultural production and income generation, ultimately enhancing livelihoods and promoting economic inclusion for this marginalized community.
Mayank Gupta, Citi’s Asia South Head of Trade and Working Capital Solutions, remarked that this partnership with SBI will leverage “our extensive trade and working capital loan solutions to create a positive social impact and drive economic growth.”
SBI is actively fostering positive change through various initiatives that prioritize environmental and social causes, focusing on expanding access to banking services, promoting financial inclusion, and enhancing financial literacy within communities.
On a global scale, Citi has pledged $1 trillion to sustainable finance by 2030, with a goal of extending access to basic services for 15 million underserved and low-income households, including 10 million women.