The agriculture sector has always been an important contributor to the economy, providing food and raw materials for industries. However, small-scale farmers often face challenges in accessing credit to fund their agricultural activities, leading to a lack of investment in the sector.
According to the World Bank, agriculture accounts for around 30% of total employment worldwide, making it a significant contributor to global poverty reduction. However, small-scale farmers often struggle to access credit due to a lack of collateral and limited financial literacy.
In recent years, there has been a growing trend of companies and financial institutions providing loans to farmers at affordable rates, with the potential to transform the agricultural sector.
In response to this challenge, a number of companies and financial institutions have started offering loans to farmers, with a focus on small-scale and marginalised farmers and businessmen. For example, the International Finance Corporation (IFC), a member of the World Bank Group, has launched several initiatives to provide access to finance for small-scale farmers in developing countries.
Similarly, Eastern Highlands Group will provide loans to farmers, businessmen and the needy at low interest rates and will play major role in the upliftment of the country.
“These initiatives have had a positive impact on the agricultural sector, helping farmers to invest in new equipment, improve their crops, and increase their yields,” said Rupesh R Pandey, the founder and chairperson of Eastern Highlands Groups. The potential impact of these loans is significant, he added.
“By providing access to finance, farmers can invest in their farms and improve their yields, resulting in increased income and improved livelihoods. This can also have a positive impact on the wider economy, as increased agricultural productivity can lead to increased exports and job creation,” said Akshay Palange, the managing director.
The provision of loans to small-scale farmers and businessmen has the potential to transform the agricultural sector and improve the lives of farmers and their families.