State Bank of India (SBI) said it has signed a Master Agreement with Vedika Credit Capital Ltd. (VCCL), Save Microfinance Pvt. Ltd. (SMPL) and Paisalo Digital Ltd. (PDL), for co-lending to individual members of Joint Liability Groups (JLG) to undertake agriculture and allied activities, including other income generation activities.
With these partnerships, SBI said it would further increase its reach in the rural and semi-urban areas, offering small ticket loans.
“We believe this initiative will financially empower millions of people and will augment bank’s vast distribution network. This will also encourage entrepreneurship among the underserved population,” said Dinesh Khara, chairman, SBI.
SBI said it was looking at co-lending opportunities with multiple NBFCs / NBFC-MFIs for financing Farm Mechanisation, Warehouse Receipt Finance, Farmer Producer Organisations (FPOs), for enhancing credit flow to double the farmers’/individuals’ income.
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