Bank of Baroda (BoB) has entered into a Memorandum of Understanding (MoU) with Small Farmers Agribusiness Consortium (SFAC).
Under this MoU, BoB would play an active role in providing collateral free loans to Farmers Producer Companies (FPC) for which credit guarantee cover up to 85 percent of the loan amount maximum up to Rs 1 crore will be made available by SFAC.
SFAC is an autonomous society promoted by Ministry of Agriculture, Cooperation and Farmers' welfare. This society has also been entrusted with the task of implementation of critically important National Agriculture Market Scheme on e-platform to progressively free agricultural trade and offer price discovery to farmers.
G.B.Panda,Head-Govt Relationships, Bank of Baroda highlighted the importance of reaching out to the grassroots level and added that signing of this MoU is a way forward to help India build a robust Agriculture economy.