India’s agriculture sector, employing over 50 per cent of the workforce and contributing nearly 18 per cent to the GDP, remains the backbone of the rural economy. However, despite its massive socio-economic importance, the sector has long struggled with issues of financial exclusion, inefficient payment systems, and a fragmented supply chain. Enter fintech — the catalyst driving a new wave of transformation in India’s agriculture ecosystem. Fintech solutions are not only democratizing access to affordable credit but are also streamlining payment collections for agri-input companies, facilitating transparent supply chains, and empowering rural women as financial facilitators. This article by Hitesh Kaneriya, Co-Founder, Kuberjee, explores how fintech is redefining the agricultural landscape, making it more inclusive, efficient, and scalable.

One of the most persistent challenges for farmers, especially smallholders and women, is access to affordable institutional credit. Despite policy pushes, the formal credit penetration remains dismally low due to the lack of financial documentation, collateral, and digital transaction history. Fintech platforms are addressing this by enabling farmers to build a digital financial footprint through innovative micro-saving products like digital gold schemes and bank FDs.

For example, a farmer saving as little as Rs 50 per month in digital gold through a mobile app or with the help of a local woman agent starts generating a consistent transaction history. This data eventually becomes the foundation for credit assessment, allowing financial institutions to offer microloans, cattle financing, and equipment credit without the need for traditional collateral.

This savings-led approach not only fosters financial discipline but also serves as a low-risk entry point for formal credit inclusion. It’s a step-by-step journey from savings to creditworthiness.

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