country’s largest lender State Bank Of India has shaken hands with Adani Capital Take co-lending partner for providing loan to farmers in country. State Bank of India (SBI) has signed a master agreement with Adani Capital Private Limited (Adani Capital), the NBFC arm of the Adani Group, to provide co-loans to farmers for purchase of tractors and farm equipment, so as to To increase efficiency in agricultural operations and productivity of crops, SBI said in a release on Thursday.

SBI said, this partnership will be able to target farmer customers in the hinterland of the country looking to adopt farm mechanization to increase the productivity of crops.

“SBI is actively looking at co-lending opportunities with several NBFCs for financing agricultural mechanization, warehouse receipt finance, Farmer Producer Organizations (FPOs) etc. to increase credit flow to double the income of farmers. ”

SBI Chairman Dinesh Khara said that this partnership will help SBI to expand its customer base as well as connect with the under-served agriculture segment of the country and contribute to the growth of India’s agriculture economy.

“We will continue to work with more NBFCs to reach out to maximum customers in remote areas and provide last mile. banking services,” Khara said.

Gaurav Gupta, MD & CEO, Adani Capital said that the company aims to contribute to farm mechanization and play a role in improving the productivity and income of the agriculture segment.

“Our aim is to provide affordable credit to the micro-entrepreneurs of India. Our partnership with SBI is aimed at the unbanked/underserved Indian farmers,” he added.

Under the RBI guidelines on co-lending schemes for banks and NBFCs, the unserved and under-served sectors of the economy are to be treated as priority sector lending and to improve credit flow at affordable rates.