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

Karur, July 26, 2018: 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.