This partnership will allow farmers and Agri-fraternity working with SLCM to get credit against their crops from the vast network of Bank of Baroda, present across the country.
Sohan Lal Commodity Management (SLCM), India’s one of India’s largest post-harvest logistics and Agri-solutions Companies, has entered into a strategic partnership with Bank of Baroda to provide comprehensive Collateral Management Solutions. This partnership will allow farmers and Agri-fraternity working with SLCM to get credit against their crops from the vast network of Bank of Baroda, present across the country.
Through this partnership, SLCM will offer enhanced access to post-harvest credit at competitive rates, while also providing secure storage and risk management solutions. Leveraging its patented and industry-proven technology platform, Agri Reach, SLCM aims to simplify the collateral management process and create greater financial inclusivity for farmers, agribusinesses, and allied stakeholders across the country.
Commenting on the significant achievement Sandeep Sabharwal, Group CEO of SLCM, expressed “FY24 has been a remarkable year for our collateral management business, bolstered by four pivotal partnerships with major banks, including our latest tie-up with Bank of Baroda. Sustaining our market leadership with 15+ years, our vision has always been to ensure that every farmer, regardless of location or crops, has the opportunity to thrive in a conventional and digitized agricultural eco-system.
By leveraging our Phygital infrastructure and cutting-edge Agri Reach technology, we are enabling our banking partners to provide farmers with efficient and secure loans, minimizing the default risk and ensuring better financial access for the entire agricultural ecosystem. This not only speaks to the industry’s confidence in SLCM’s capabilities but also showcases the substantial growth every year in our Assets Under Management (AUM)”.
Currently, the company has expansive partnerships with 20+ leading financial institutions in India and Myanmar, further expanding SLCM’s banking portfolio and market reach.
As SLCM’s AUM increased by an outstanding 73% to INR 11,952 crs in the first half of the current fiscal year from INR 6,911 crs in the same period during the previous financial year (FY 2023-24), these collaborations have also emerged as one of the primary drivers of growth for the company.
Salman Ullah Khan, CBO of SLCM expressed, “Our latest tie-up with Bank of Baroda is a testament to their invested faith in our innovative and scientific approach to post-harvest management platform. Our collaboration with financial institutions are part of SLCM’s larger strategy to provide Warehouse Receipt Financing and collateral management services across territories, enabling farmers and agribusinesses to access loans using their stored goods as collateral”.
This collaboration extends SLCM’s services across PAN India, ensuring that farmers, particularly in rural areas, have access to the financial support they need. SLCM’s network spans 19 states, operating over 17000+ warehouses and 36 cold storages, serving 1,080+ commodities as of 31st October 2024. The company’s services are especially beneficial to sectors dealing with cotton, pulses, maize, spices, mentha oil, and other key agricultural products.
