Karur Vyasa Bank & StarAgri Finance announce agri-based co-lending agreement

·         StarAgri Finance and KVB have signed an MOU to offer a co-lending solution for agri-commodities stored in StarAgri’s warehouses

·         Roll-out, initially, in four states; will cover all StarAgri warehouses across India in the next phase.

·         KVB was set up in 1916 to provide financial assistance to traders and small agriculturists in Karur and small traders; StarAgri is one of India’s first, professionally managed, post-harvest solutions companies

July 26, 2018, Karur: StarAgri Finance Ltd, the 100% financial services subsidiary of StarAgri Warehousing and Collateral Management Limited (StarAgri), one of India’s first, professionally managed post-harvest solutions companies and Karur Vysya Bank (popularly known as KVB), one of India’s oldest and reputed banks founded to provide credit facilities to small agriculturists and traders, announced a strategic tie-up for co-lending against agri-commodities stored in the StarAgri’s state-of-the-art and modern warehouses.

An Memorandum of Understanding (MOU) was signed between StarAgri Finance and KVB to provide co-lending services in the four states of Tamil Nadu, Karnataka, Andhra Pradesh and Maharashtra. This partnership will help make institutional finance accessible to local commodity traders and farmers. All loans will be provided against their agri-commodities stored in StarAgri’s scientifically planned and centrally managed warehouses.

Commenting on the tie up, Shri Amith Aggarwal, Founder Director, StarAgri said, “KVB is one of the oldest and most respected financial institutions that provides finance to the trader community and agriculturists. We are offering a unique credit solution to our customers through our partnership with KVB.”

Also present at the occasion was Mr. Gurinder Singh Sehmbey, CEO, StarAgri Finance. He said, “It is an honour to partner with KVB, one of the oldest banks in our country. The partnership will ensure credit facilities to  our rural customers via a  formal lending system, which is transparent, genuine and one that enables them to grow their agri-businesses.”
The co-lending solution will be rolled out immediately so that its benefits can accrue to all stakeholders of the agri community.

About StarAgri:
StarAgri is India’s largest post-harvest agricultural solutions company. The core of StarAgri’s operating philosophy is to build and sustain partnerships between farming communities and customers for a more efficient market, which translates into better realization for farmers and lower cost for buyers. The company has recently launched a digital marketplace in the name of "AgriBazaar", for enabling trading and auction of agricultural commodities.
StarAgri adds value at every stage of the agriculture processing value chain. Leveraging its tie-ups with 45 banks and financial institutions, StarAgri currently holds commodities worth USD 1.3 billion across 900+ collateral management locations and manages over 500 agri-warehouses across 18 states with an aggregate storage capacity of 1.75 million MT.

About StarAgri Finance Limited (SFL):
StarAgri Finance if a wholly owned subsidiary of StarAgri Warehousing and Collateral Management Ltd. It is a trusted financial partner to rural India providing integrated credit services and customised financing solutions for diverse agri-asset and collateral needs. With easy, transparent and affordable access to credit, we enable small and large Indian farmers, farmer groups, agri- and allied businesses to access finance for their agri-business needs.
Committed to providing genuine credit solutions, we aim to propel rural India to higher productivity and improved socio-economic well-being.

Staragri has been in this business for last 15 years and has till date facilitated disbursements worth over Rs 2 lakh crores. This collaboration for pave way for much deeper association for both organizations in the near future. Staragri Finance, the NBFC of the group company, started business operations in 2015 and has built a healthy portfolio in Agri commodity lending space.