Federal Bank partners with Commodity Online for loan distribution
KOCHI: Federal Bank Limited has partnered with online data and information portal Commodity Online for the distribution of loans against warehouse receipts and collateral management services across the country.
According to the agreement, Commodity Online will roll out an agri commodity financing platform through its flagship portal commodityonline.com where farmers and traders can track commodity markets and warehouses online and get financing for their commodities quickly.
Mohan K, deputy general manager (SME & Agri), Federal Bank said the bank’s partnership with Commodity Online enables it to provide financing for agri commodities with collateral management across India. “Today, less than 40% of traders in India have access to institutional credit. And barely 10-15% small and marginal farmers get access to finance. Loans against warehouse receipts were around Rs 5000 crores ten years back. Currently, banking institutions have lent around Rs 40000 crore against warehouse receipts,” he said.
Mohan pointed out that Federal Bank, with its country-wide network of branches and tie-ups with a dozen collateral management companies, is keen to step up the agri commodity financing business through commodityonline.com as it has huge potential in an agrarian country like India.
George Iype, managing director of Commodity Online said the portal has rolled out an exclusive online platform wherein farmers and traders can track the spot market prices of all commodities live, check where warehouses are available and track research insights from each commodity market across India.
“Commodity financing has the potential to grow to a Rs 2 lakh crore business by 2025 in India. Commodity Online is focused on providing various easy financing solutions online through its partnership with Federal Bank,” Iype said.
According to the agreement, Commodity Online will roll out an agri commodity financing platform through its flagship portal commodityonline.com where farmers and traders can track commodity markets and warehouses online and get financing for their commodities quickly.
Mohan K, deputy general manager (SME & Agri), Federal Bank said the bank’s partnership with Commodity Online enables it to provide financing for agri commodities with collateral management across India. “Today, less than 40% of traders in India have access to institutional credit. And barely 10-15% small and marginal farmers get access to finance. Loans against warehouse receipts were around Rs 5000 crores ten years back. Currently, banking institutions have lent around Rs 40000 crore against warehouse receipts,” he said.
Mohan pointed out that Federal Bank, with its country-wide network of branches and tie-ups with a dozen collateral management companies, is keen to step up the agri commodity financing business through commodityonline.com as it has huge potential in an agrarian country like India.
George Iype, managing director of Commodity Online said the portal has rolled out an exclusive online platform wherein farmers and traders can track the spot market prices of all commodities live, check where warehouses are available and track research insights from each commodity market across India.
“Commodity financing has the potential to grow to a Rs 2 lakh crore business by 2025 in India. Commodity Online is focused on providing various easy financing solutions online through its partnership with Federal Bank,” Iype said.
