IndusInd Bank has signed a Memorandum of Understanding with Escorts Agri Machinery in an effort to assist the farming community. The agreement will allow them to provide loans at reasonable interest rates. Both banks and Escorts Agri Machinery will work together to determine the financial needs of their customers and develop financial programs.
These programs will encourage investment in modern equipment to increase farm productivity, and income. “The rural sector is expanding at a rapid pace, and we are seeing our clients shift towards more technologically advanced agricultural practices. Shenu Agarwal from Escorts Agri Machinery stated that our role is to offer them the best products and simplify the purchasing process.
IndusInd Bank will use its knowledge and penetration in India to support Escorts Agri Machinery’s larger goals. According to SV Parthasarathy (IndusInd Bank Consumer Finance Division Head), the partnership between Escorts Agri Machinery & IndusInd Bank is intended to facilitate transparency, seamlessness, as well as convenience for farmers.
The agricultural sector needs this initiative to breathe new life into its finances. A large proportion of loans it receives from banks, cooperative societies, government agencies and other sources is not uncommon. The All India Debt and Investment Survey, a recent survey by the National Statistical Office (NSO), revealed that over 50% of India’s agricultural households had an average outstanding debt of Rs 74121 in 2019. It also stated that only 69.6 % of these loans were taken out of institutional sources like banks and cooperatives, and 20.5 % were taken out from professional money lender. Only 57.5% were used for agriculture.
