The initiative supports financing for irrigation systems and other sustainable farming solutions.
Caspian Debt has announced the launch of new loan product to help Microfinance Institutions (MFIs) fund climate-adaptive agricultural products. The credit facility aims to boost farmer resilience against climate change. The initiative supports financing for irrigation systems and other sustainable farming solutions. Caspian Debt expects this to improve food security and farmer income.
Caspian Debt MD & CEO Avishek Gupta said the loan product will accelerate adoption of climate-resilient technologies. The company plans to partner with MFIs and technology providers. The loan product builds on work by Sustain Plus Energy Foundation, GIZ, and Sa Dhan. GIZ and NABARD partnered with these organizations to promote climate-resilient agricultural technologies. Financial intermediaries have started lending to farmers for these products.
GIZ Director Shailendra Dwivedi called the partnership a milestone for climate adaptation financing. Jiji Mammen, Sa-Dhan CEO, said the loan product will boost their climate-resilient agriculture initiative. Sustain Plus Energy Foundation Director Ganesh Neelam said the loan product will help financing institutions lend for energy and agriculture technologies.
Sustain Plus has tested climate-adaptive products and demonstrated their benefits. GIZ mapped out the framework and coordinated with financial institutions. Sa Dhan mobilized MFIs to offer loans. GIZ also promotes decentralized renewable energy technologies, which are part of the loan product’s focus.
