Samunnati, an agricultural value chain facilitator and India’s largest agricultural company, today announced that its Instant Pre-Approved Loans (Sam IPL), digital lending solution for nascent farmer collectives (FPC/FPO ), exceeded the cumulative disbursement amount of INR 37 Crores on 600 loans since its launch last year on July 21.
Loan disbursement volume stood at 33.1 crore in FY22 and continued to see tremendous momentum in April even as we launched the new fiscal year. The online platform that provides instant pre-approved loans to smallholder farmers without collateral, speeds up credit obtaining processes such as CIN verification, CIBIL score verification, PAN validation and principle sanction letter . The digital loan finder system thoroughly vets applications within minutes and covers loan amounts up to Rs 5 lakhs.
Samunnati, being an ecosystem player, has been involved at the local level in response to the challenges faced by Agri practitioners during the difficult times of the pandemic. The Instant Pre-Approved Loan (IPL) introduced instant financial support and aims to provide financial assistance to farmers within days. The revolutionary Instant Pre-Approved Loan is accessible through the FPO Gateway, where 800 FPOs have applied for Instant Pre-Approved Loans since its launch.
Anil Kumar SG, Founder & CEO shared his thoughts on this milestone saying, “It is clear that the next wave of digital revolution will come from rural India and FPO Gateway aims to be at the forefront of enabling this revolution for FPOs. We believe there is a need for new business models and new technologies to come together to unleash the gold mine of Indian agriculture. Sam IPL is another step in this direction and strives to empower smallholder farmers by supporting them not only with credit, but also with personalized and timely credit. The results we have seen in less than 9 months from Sam IPL reinforce our belief in the principles that underpin Samunnati’s mission to unlock the billion dollar potential of Indian agriculture.”
Since its inception in 2014, Samunnati has deployed more than Rs 10,000 crore to provide agricultural trade and agricultural finance solutions to farmer collectives. To make agricultural markets more efficient and operate at a better balance, Samunnati is building India’s first open agricultural network.
The Open Farm Network serves as a holistic meta-platform to bring together farmer collectives, agricultural market players, traders and institutional buyers fostering greater access to trade linkages, entry-exit services and more, creating thus a higher balance in agro-space.
In just 9 months of launch, Samunnati’s Instant Pre-Approved Loan (Sam-IPL) has seen nearly 600 FPO loans disbursed with 165 more ongoing With over 1500 Farmer Collectives registered on its FPO Gateway platform, Samunnati has a membership base of over 6 million farmers across 100 agricultural value chains and 22 states, Samunnati is committed to providing customized solutions that have resulted in reduced farming costs, improved productivity and a increased engagement of our client members.
An example of the impact generated by Sam IPL is Bagli Krishak Producer Company Ltd (BKPCL). Established in October 2018, Bagli KPCL is operational in 12 villages in Hatpipaliya block in Dewas district of Madhya Pradesh state, covering 9 panchayats and has over 1000 small and marginal farmers. The region has immense potential for trading, processing or any other value-added activity for crops like soybeans, gram, wheat and other vegetable crops.
Bagli KPCL struggled with access to finance, market linkages and capacity building. In order to expand its business, Bagli KPCL needed 5 lakhs and SamIPL of Sammunati disbursed the loan amount within 12 days. Samunnati, through its agricultural trading business, has enabled market support through its local AMLA centre. With the overall intervention of Samunnati, the FPO achieved a turnover of 2.72 crores as of December 31, 2021.
Jitendra Singh Tanvar, CEO of Bagli KPCL shared, “As an organization of agricultural producers, we need strong business acumen to be able to evolve our products and our yields. Samunnati has helped not only to meet our working capital needs (within days) but also to instill a strong sense of scale in the OPS through its capacity building initiatives and the measurable results are visible in the growth of our annual turnover.
First published: April 30, 2022, 10:55 a.m. IST