Shivalik Small Finance Bank has announced a strategic partnership with Arya.ag, a grain commerce platform, to provide financing to small farmers against warehouse receipts. The collaboration will enable Arya.ag to further its mission of driving financial inclusion for farmers and Farmer Producer Organizations (FPOs) in India. Through the partnership, Shivalik Small Finance Bank will offer loans to farmers and FPOs under Warehouse Receipt Finance, using the stored crops as collateral. The business correspondent model partnership will facilitate loan disbursement, credit assessment, documentation, and recovery. This partnership will help in promoting financial inclusion in rural areas and strengthening the agriculture ecosystem in India.
Key highlights of Arya.ag and Shivalik Small Finance Bank Partnership:
- Financial Inclusion for Farmers:
The partnership between Arya.ag and Shivalik Small Finance Bank aims to drive financial inclusion for farmers and FPOs (Farmer Producer Organizations) in India. The collaboration will help in offering loans to small and marginal farmers, including women, who are often excluded from formal banking channels.
- Warehouse Receipt Finance:
Under the partnership, Shivalik Small Finance Bank will offer loans to farmers and FPOs through warehouse receipt finance. This means that farmers can use their stored crops as collateral for securing loans from the bank, which can help them in accessing credit and managing cash flow efficiently.
- Business Correspondent Model:
Arya.ag will act as a business correspondent for Shivalik Small Finance Bank, facilitating the loan disbursement process and helping in credit assessment, documentation, and recovery. This model enables banks to extend their reach in remote areas, where it is difficult to set up branches, and offer financial services to underserved communities.
- Focus on Technology:
Shivalik Small Finance Bank has a technology-focused vision, and this partnership with Arya.ag is a step towards leveraging technology to provide innovative financial solutions to farmers. The collaboration will enable farmers to access financial services through Arya.ag’s digital platform, which is designed to simplify and streamline the lending process.
- Strengthening Agriculture Ecosystem:
The partnership between Arya.ag and Shivalik Small Finance Bank will strengthen the agriculture ecosystem in India by providing farmers with access to credit, which is essential for their growth and development. It will also help in reducing the dependency on informal sources of credit and promote financial inclusion in rural areas.