This partnership will enable Samunnati to extend its reach to FPOs with customized financial solutions at affordable interest rates, leveraging the vast resources available with SBI. The partnership will enhance the SBI channel’s credit reach to the underserved smallholder farmer segment of the agriculture sector, leveraging Samunnati’s reach and nuanced understanding of the FPO sector.
SBI and Samunnati have also entered into a non-financial Memorandum of Understanding to develop the FPO sector, integrate FPOs as an asset class and increase awareness of this class of farmer-owned institutions in the banking sector.
Samunnati works with a growing network of over 3000 farmer collectives with a membership base of over 6 million farmers with solutions spanning Agri Finance, Agri Commerce and advisory services.
Speaking to the Founder and CEO of Samunnati, Mr. Anil Kumar SG said, “We are delighted to partner with SBI, the largest and most trusted brand in Indian banking. SBI’s pan-India presence and deep interest in financial inclusion for smallholder farmers are catalysts to help an FPO benefit from a range of financial services. Our collective ambition is to make markets work for smallholder farmers by making adequate, affordable and timely credit available to FBOs. »
In November 2020, the Reserve Bank of India (RBI) issued guidelines on the co-lending model between scheduled commercial banks and NBFCs. SBI is one of the first banks to participate in a co-lending program aimed at integrating FPOs as an asset class.
Mr. Sree Rama Charyulu M, GM, NBFC Alliances of SBI said, “We see immense opportunity in this partnership to impact the agricultural ecosystem. Samunnati’s focus in creating impact in the FPO space is extremely relevant and we believe there are significant rural business opportunities hidden within these farmer collectives. SBI wants to establish a strong foothold in this space by leveraging partnership ties, on the one hand, to reach out to customers while extending SBI’s superior financial product design capabilities to our partners. This will create synergies at the operational level.