“Lending Institutions Accelerating Exposure To The Financial Inclusion Segment”

India, a global agricultural powerhouse with the second-largest agricultural land area, exports USD 42 billion and ranks 11^th among exporting nations. However, climate change threatens its food self-sufficiency. Adopting climate-smart agriculture technology is essential for enhancing productivity, sustainability, and food security. These innovations will help in a changing climate.

The “Financing through Climate Resilient Technologies in Rural Livelihoods” initiative promotes climate-smart technologies and raises awareness among lending institutions. Our vision is to accelerate farmer’s income through financial support and strategic partnerships, fostering climate resilience, biodiversity, and economic prosperity. Our mission is to provide financial assistance that helps rural communities to escape poverty while enhancing their quality of life. Numerous financial institutions have stepped forward to participate in this initiative aimed at combating climate change. 

Caspian Debt has launched a line of credit aimed at strengthening climate resilience in agriculture. It could possibly be the world’s first such line of credit. This initiative focuses on enhancing climate resilience through financing of technological solutions which have been proven to impart climate resilience in agriculture. NABSAMRUDDHI Finance Limited (NABSAMRUDDHI), has signed a 4-way MOU with Sa Dhan, Sustain Plus Energy Foundation and GIZ India. NABSAMRUDDHI has taken this step to scale up financing to climate resilient agriculture which the partnership of Sa Dhan, Sustain Plus Energy Foundation and GIZ India have been espousing with FIs. Additionally, Samunnati Financial Intermediation & Services Pvt. Ltd. has initiated funding for women-centric 0.3 HP solar pumps, thus enabling empowerment of many women. 

In a similar vein, Pahal Financial Services Pvt. Ltd., known for providing microfinance services to low-income households, introduced financing options for bio-digestors in partnership with Sistema.bio. Purvi Bhavsar, Co-founder and Managing Director of Pahal, emphasizing on the crucial role of MFIs, stated “Microfinance institutions (MFIs) can play a crucial role in promoting the vision of accelerating farmers’ incomes, ensuring food security, and fostering sustainable practices due to their extensive reach and strong connections in rural markets. To stay relevant and impactful, MFIs must innovate and move beyond conventional methods. This approach is vital not only for the ecosystem but also for their continued relevance.” 

Friends of Women’s World Banking (FWWB) has extended a line of credit of INR 50 lakhs to Sampada Entrepreneurship and Livelihoods Foundation to implement solar powered drip irrigation systems, enhancing water efficiency and promoting sustainable agricultural practices. Anirudha Mirikar director of Sampada Foundation said, “Green microfinance can bridge the gap between sustainability and economic resilience, creating a path for those affected by climate change to build better lives.”

This climate-resilient initiative offers significant benefits for financial institutions, enabling them to diversify their portfolios by investing in projects that align with global sustainability goals. By partnering with other financial institutions, they gain access to a wealth of knowledge and resources, enhancing their capacity to assess and manage climate risks effectively. This initiative strengthens market position and enhances ESG compliance, paving the way for a robust framework that empowers these institutions to contribute to climate resilience while achieving their business objectives.

Loan Xpress is a debt syndication platform catering to the capital needs of the SME & Mid-Market corporate segment, startup & NBFCs through structured debt solutions. It has collaborated with Sustain Plus, CInI & GIZ to create awareness among a broad FIs about the initiative & it’s scalability.

Company profile – https://loanxpress.com/

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