In order to promote farmers’ financial inclusion, Arya.ag has announced a partnership with Shivalik Small Finance Bank

To finance small farmers against warehouse receipts, Shivalik Small Finance Bank has announced a strategic partnership with grain commerce platform Arya.ag

To finance small farmers against warehouse receipts, Shivalik Small Finance Bank has announced a strategic partnership with grain commerce platform Arya.ag. Through the partnership, Arya.ag will be able to carry out its mission of promoting financial inclusion for Indian farmers and Farmer Producer Organisations (FPOs). Shivalik Small Finance Bank will provide loans to farmers and FPOs through the partnership under the Warehouse Receipt Finance programme, using the stored crops as collateral.

Partnerships based on the business correspondent model will speed up loan disbursement, credit evaluation, documentation, and recovery. Through this partnership, financial inclusion in rural areas will be encouraged, and India’s agricultural ecosystem will be strengthened.

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Key achievements of the partnership between Arya.ag and Shivalik Small Finance Bank:

Farmers’ Financial Inclusion:

Arya.ag and Shivalik Small Finance Bank have partnered to promote financial inclusion for Indian farmers and FPOs (Farmer Producer Organisations). Due to their frequent exclusion from formal banking channels, small and marginal farmers, including women, will benefit from the collaboration by receiving loans.

Warehouse Receipt Finance: As part of the partnership, Shivalik Small Finance Bank will provide loans through warehouse receipt finance to farmers and FPOs. In order to access credit and effectively manage their cash flow, farmers can use their stored crops as collateral to obtain loans from the bank.

Business Correspondent Model: Arya.ag will serve as a business correspondent for Shivalik Small Finance Bank, assisting with credit analysis, documentation, and recovery as well as streamlining the loan disbursement procedure. With the help of this model, banks can reach out to underserved communities and establish branches in remote locations where it is challenging to do so.

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Focus on Technology: Shivalik Small Finance Bank has a technology-focused vision, and this collaboration with Arya.ag is a step towards utilising technology to give farmers cutting-edge financial solutions. The partnership will make financial services available to farmers via the digital lending platform created by Arya.ag, which is intended to streamline and simplify the lending process.

Strengthening the Agriculture Ecosystem: The collaboration between Arya.ag and Shivalik Small Finance Bank will strengthen the Indian agriculture ecosystem by providing farmers with credit, which is essential for their growth and development. It will also help to reduce reliance on informal credit sources and promote financial inclusion in rural areas.