SBI, Citi to Provide $295 Million Social Loan for Indian Small Farmers

In a significant move to strengthen financial support for India’s agricultural sector, Citi and the State Bank of India (SBI) have announced a social loan facility worth $295 million. The initiative aims to provide much-needed credit to small and marginal farmers, enhancing their agricultural productivity and income. The loan, facilitated by Citi’s Trade & Working Capital Solutions, will be channelled through SBI’s Kisan Credit Card loan portfolio to ensure widespread access to credit in rural areas.

Enhancing Financial Access for Farmers

The social loan facility will enable SBI to finance its Kisan Credit Card loan portfolio, ensuring that farmers with small landholdings receive essential credit. This initiative aligns with the government’s broader vision of financial inclusion in the agricultural sector, empowering farmers with the necessary funds to invest in better farming practices and resources. By leveraging Citi’s expertise in trade and working capital solutions, this collaboration aims to create a significant social and economic impact.

Innovation in Trade Finance for Social Impact

Citi’s approach to trade finance has been centred around innovation, and this partnership exemplifies how financial solutions can drive positive change. Mayank Gupta, Asia South head of Citi’s Trade & Working Capital Solutions, highlighted the importance of this agreement in unlocking economic growth through innovative financing. SBI’s deputy managing director, Jayati Bansal, emphasised the bank’s commitment to financial inclusion, stating that the collaboration would help reach small and marginal farmers who often struggle to access credit.

SBI Share Performance 

As of April 04 2025, at 10:10 AM, SBI share price was trading at ₹774.75 reflecting a decline of 0.57% from its previous closing price. Over the past month, it has surged by 8.20%.

Conclusion

The Citi-SBI partnership marks a crucial step towards strengthening financial accessibility in India’s agricultural sector. By facilitating credit for small farmers, this social loan initiative not only supports economic growth but also fosters sustainable agricultural development. Through this collaboration, both institutions reinforce their commitment to financial inclusion and rural empowerment.

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