BoB signs agreement with SFAC

Bank of Baroda has entered into a memorandum of understanding (MoU) with Small Farmers Agribusiness Consortium to provide collateral free loans to famers producer companies (FPCs).

The loan will have a credit guarantee cover of up to 85% of the amount for a maximum of up to Rs 1 crore, and will be made available by Small Farmers Agribusiness Consortium (SFAC), the bank said.

SFAC is an autonomous society promoted by Ministry of Agriculture, Cooperation and Farmers’ Welfare, Government of India, which is pioneering inclusive growth of small and marginal farmers in agribusiness activities.

The society has also been entrusted with the task of implementation of the critically important National Agriculture Market Scheme on e-platform to progressively free agricultural trade and offer price discovery to farmers.