that even though the banks and other financial institutions are aggressively increasing their reach to the farmer community under priority sector lending , the penetration continues to be low . In this scenario , the Non-Banking Finance Companies ( NBFC ) sector focusing on Agriculture mechanization has scripted a remarkable success story . It is a testimony to the truly diverse and entrepreneurial spirit of India . From large Agri infrastructure financing to small farmers ' microfinance , these NBFCs have innovated over time and found ways to
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Public domain data suggests that only 30 percent of total small and marginal farmers have access to banks and other formal credit channels address the debt requirements of the farmer community as a whole . Over time , agri-focused NBFCs & Fintechs have evolved to be well regulated and , in many instances , adopted best practices in technology , innovation , risk management , and governance . Thus , act as conduits and have furthered the Government ' s agenda on financial inclusion .
The agri-focused NBFCs & Fintechs can meet the long-term credit needs of the farmers as most of them have high penetration in rural India , and the bulk of their credit
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BioVoiceNews | March 2023