Samunnati enters into co-lending partnership with SBI for financing FPOs

Open agri network Samunnati on Tuesday said it has entered into a co-lending partnership with State Bank of India (SBI) to expand its outreach to Farmer Producer Organisations (FPOs).

Initially, under this partnership, the lending amount would be Rs 100 crore, Samunnati said in a statement.

This partnership will enable Samunnati to scale up its outreach to FPOs with customised financial solutions at affordable interest rates, leveraging the vast resources available with SBI.

SBI and Samunnati have also entered into a non-financial Memorandum of Understanding (MoU) to develop the FPO sector, to mainstream FPO as an asset class and increase awareness of this class of farmer-owned institutions in the banking sector.

''SBI's pan-India presence and deep interest in financial inclusion of the small-holder farmers are enablers for helping a FPO avail an array of financial services. Our collective ambition is to make markets work for smallholder farmers by making available adequate, affordable and timely credit to the FPOs,'' Samunnati Founder and CEO Anil Kumar SG said.