Citi and SBI announce social loan to support local smallholder farmers in India

Citi and State Bank of India (SBI), India’s largest bank, have announced a Social Loan facility of USD$295 million with Citi’s Trade & Working Capital Solutions. This financing is specifically directed towards smallholder farmers in India, to support them to improve their agricultural productivity, enhancing their financial well-being.

Smallholder farmers contribute a significant segment of India's agricultural sector, yet face pronounced social and economic difficulties. Limited income and restricted access to credit hinder their ability to plan for long-term needs, often restricting their productivity, growth, and excluding them from the wider economy.

By enhancing access to credit, this facility aims to foster their agricultural production and income-generation, thereby contributing towards livelihood enhancements and promoting economic inclusion for this underserved community.  SBI will utilize the facility to finance its Kisan Credit Card loan portfolio, to help meet the credit requirements of the agricultural sector, and within this, smallholder farmers.

Mayank Gupta, Asia South Head of Trade and Working Capital Solutions, Citi added: “This agreement with SBI is great example of that innovation, utilizing the depth of our trade and working capital loan solutions to unlock positive social impact and economic growth.”

SBI is actively driving positive change through various initiatives across its operations, products, and services that prioritize environmental and social causes. It supports its community by expanding access to banking services, promoting financial inclusion, and enhancing financial literacy.

Jayati Bansal, Dy. Managing Director (International Banking Group), State Bank of India, said, “Our collaboration with Citi on this social loan facility underscores our commitment to advancing financial inclusion for India’s farming community. Leveraging SBI’s extensive network, we aim to reach small and marginal farmers who are at the core of India’s agriculture sector but often lack access to essential credit resources.