Kolkata: Citi and State Bank of India (SBI) have announced a social loan facility of $295 million to provide financing support to India's small farmers. The loan will be given by Citi’s Trade & Working Capital Solutions.

This is aimed at improving farmers' agricultural productivity and income generation.

“At Citi we’re consistently pursuing innovative trade solutions that also make a difference. This agreement with SBI is a great example of that innovation, utilizing the depth of our trade and working capital loan solutions to unlock positive social impact and economic growth,” said Mayank Gupta, Asia South head of Citi's Trade and Working Capital Solutions.

SBI will utilize the facility to finance its Kisan Credit Card loan portfolio, to help meet the credit requirements of the agricultural sector, especially the farmers with small landholding.

“Our collaboration with Citi on this social loan facility underscores our commitment to advancing financial inclusion for India’s farming community," Jayati Bansal, SBI's deputy managing director (International Banking Group), said.

"Leveraging SBI’s extensive network, we aim to reach small and marginal farmers who are at the core of India’s agriculture sector but often lack access to essential credit resources," she added.