Axis Bank has collaborated with ITC Ltd to offer loans and services to farmers who are part of ITC’s agriculture ecosystem, the two companies said in a joint release.
The partnership will enable Axis Bank to cater to the financial requirements of unserved and under-served farmers based in remote regions by offering them a range of assets and liability products such as farmer loans and gold loans, among others.
Axis Bank will leverage ITCMAARS (Meta Market for Advanced Agricultural Rural Services), a full-stack agri-tech application to reach out to the farmers and address their financial requirements. The bank will also offer farmers a range of products and services through its rural-urban and semi-urban (RUSU) branches located across 656 districts.
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“Powered by the ITC e-Choupal ecosystem that connects with over 4 million farmers, we have now implemented ITCMAARS a phygital ecosystem that provides a range of solutions through Hyperlocal and personalised advisory, Agri- Inputs, Financial services and Market linkages,” said Rajnikant Rai, Divisional Chief Executive, Agri Business Division, ITC.
Timely availability of institutional credit will enable the farmer to buy quality Inputs, which will help improve productivity and enhance farm incomes, he added.
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Through this initiative, Axis Bank aims to further scale up its Bharat Banking strategy by increasing new-to-bank accounts. As of December 31, the bank’s rural advances were up 27 per cent YoY, disbursements were higher by 12 per cent and deposits were up 16 per cent on year.