IFC joins Andhra Pradesh Cooperative Bank to finance 4.3million small and marginal farmers

MUMBAI: Nearly 4.3 million small and marginal farmers in Andhra Pradesh will be benefited with new credit and non-credi products including loans, savings, insurance, remittances and other offerings. Andhra Pradesh State Cooperative Bank, which serves through District Cooperative Central Banks and Primary Agricultural Cooperative Credit Societies, has joined hands with the World Bank’s financial arm IFC to design and offer new products for small farmers in order to expand banking services. IFC will provide all support including training to bank office staff in designing financial products, said in a press statement. Interestingly, the bank is also planning to offer financial products for women entrepreneurs in the state.

“Credit products offered under the mandated priority sector lending tend to be mostly basic crop loans, which do not meet the full financing needs of farmers,” said Y.Vijayender Reddy, President, Andhra Pradesh State Cooperative Bank. “This project will help us to expand the product and client base substantially, and also strengthen the portfolio quality with better risk assessment.” This will help us meet the credit needs of the farmers to help accelerate agricultural growth in the country.

“IFC will work with the bank to develop flexible financial products along with increased financial awareness, which will help address the agri-finance needs of the farmers while controlling business risks,” Jennifer Isern, who leads IFC’s Access to Finance work in South Asia. Nearly 50% of total farmers in the country have limited or no access to financial services, as per NABARD.