Media coverage on unique model of Incofin cvso investee SAMFIN
During the summer, Incofin cvso invested EUR 3 million in Samunnati Financial Intermediation & Services Pvt. Ltd (SAMFIN), an Indian Non-banking Financial Company (NBFC) established in 2014. Given SAMFIN’s unique model for financing agri-related activities, by providing a long term loan, the fund is helping the NBFC to reach more impact.
SAMFIN offers financial, co-financial and non-financial solutions to micro, small and medium entrepreneurs including farmers, agri enterprises, wholesalers and retailers. The NBFC works with over 230 Community Based Organisations that are collectively serving approximately one million predominantly small holder Farmers, in 112 districts of rural India.
SAMFIN targets agri-value chains and its participants, providing financial intermediation (loans), farmer market linkages and crop advisory services. This helps in passing maximum benefits to small and marginalized farmers, a financially excluded segment, since banks only fund against hard collaterals, which are often unavailable to farmers and micro, small and medium entrepreneurs.
‘Our vision is to establish that agricultural lending is not risky as long as the products and services are structured specifically for [farmers],’ says Promotor and CEO SG Anil Kumar in an interview with BusinessLine. ‘When you are lending to a farmer, make sure for what activity and that this activity gives him or her the anticipated income. It is from this income that they will repay your loan.’