In a bid to help the farming community financially, Escorts Agri Machinery and IndusInd Bank have signed a Memorandum of Understanding to provide loans at affordable interest rates to the farming community. Both the entities will work to understand the financial needs of customers and design financial programs accordingly.
These programs will be aimed at encouraging investments in modern equipment for raising farm productivity and income. “The rural industry is growing at a record pace and we are seeing our customers shifting towards technologically advanced agricultural practices. Our role here is to provide them with the best of products and make the process of purchase as simple as possible,” Escorts Agri Machinery CEO Shenu Agarwal mentioned.
Under this MoU, IndusInd Bank will utilise its understanding of rural customers and penetration throughout India to help Escorts Agri Machinery in achieving its larger goals vis-à-vis India’s farming community. The partnership between IndusInd Bank and Escorts Agri Machinery is aimed to usher in transparency, seamlessness and convenience to support farmers, according to IndusInd Bank’s Consumer Finance Division Head SV Parthasarathy.
This initiative is a much needed lease of life for the agricultural sector as a sizeable proportion of loans in this sector still come from sources other than banks, cooperative societies and government agencies. A recent survey conducted by the National Statistical Office (NSO) – All India Debt and Investment Survey -- stated that more than 50 per cent agricultural households in India had an average outstanding debt per household at Rs 74,121 in 2019.
It also mentioned that only 69.6 per cent of these loans were taken from institutional sources such as government agencies, banks and cooperative societies whereas 20.5 per cent were taken from professional money lenders. Of these, only 57.5 per cent were taken for agricultural purposes.
Edited by Mehak Agarwal
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