State Bank of India (SBI), India’s largest commercial bank and Sohan Lal Commodity Management (SLCM), India’s leading agri-services & solutions provider, on Thursday entered into a strategic tie up for Warehousing Receipt Financing and Collateral Management Services.
The strategic partnership will deliver post-harvest credit facility to farmers all across India, empowering farmers through affordable finance, scientific storage facilities and fair price discovery of their produce
The two companies aim to reach farmers, joint liability groups, producer companies across India with fair cost funding, warehousing, quality storage facilities through SBI’s 9426 plus rural and semi rural branches and SLCM’s offices spread over all states in India.
As part of the tie up, SBI will provide post-harvest credit facilities while SLCM will offer warehousing and other value-added services to farmers. The produce stored in SLCM’s state-of-the-art warehouses will act as collateral for the finance extended by SBI. Sohan Lal Commodity Management is a technology driven supply chain solutions company which provides comprehensive warehouse management and procurement solutions to farmers, processors, corporates, traders, exchanges and to the Govt. across 100 plus locations, 20 states and in 32 different agricultural commodities. Sohan Lal is one of the fastest growing companies in this sector promoted by Sandeep Sabharwal having an experience of more than 17 years plus in food and Agri sector
This tie up is another initiative of SBI’s commitment to rural banking and reaching out to the Indian farmer with genuine credit and financing options. The collateral management services provided will help the farmer in realising a better price and expand fully secured loans by Banks. SBI plans to lend around Rs.500 crore, through this tie-up, in agricultural lending.
SBI, India’s largest bank and number one financier to the rural sector, especially small and marginal farmers, will use SLCM’s ground experience and direct contact with farmers to ensure that genuine farmers get credit facilities and their produce is safe in the warehouses, till realisation.
SBI, with a network of over 9426 rural and semi-urban branches and 428 special Agricultural Development Branches (ADBs), is the leader in agri-finance in the country with a portfolio of over Rs. one lakh crore in agri-advances covering more than one crore farmers