Empowering Farmers & Enhancing Agricultural Financing: L&T Finanace Partners with Gogreen Warehouses
Mumbai: Gogreen Warehouses Pvt Limited, an integrated Agri-commodity and collateral management company, has announced that it signed a memorandum of understanding (MoU) with L&T Finance Ltd (LTF) to collaborate work together in the area of collateral management.
The agreement was signed by Mr. Santosh Kumar Sahu, Director & CEO of Gogreen Warehouses Pvt Limited and Asheesh Goel, Chief Executive – Farmers Finance at L&T Finance.
Gogreen is associated with 38 leading banks and financial institutions for collateral management. Through this network, it has facilitated funding and benefited over more than 3,000,00 small and medium farmers by way of warehouse receipt financing (WRF).
Till date, Gogreen has helped banks and financial institutions to build the Farmer loan book. During the last fiscal year we had disbursed over Rs 5000 Crore funding through collateral management support and services to banks, thereby benefiting borrowers across the ecosystem, a company statement said here.
Gogreen Warehouses is actively worked with FPO’s & Farmers through Various PSUs. Where Gogreen plans to do microwarehousing & develop collection centers at the village level to give offer better options to the small & marginal Farmers to helping them mitigate their price risk & reduce distress sales by giving them more bargaining power. Gogreen will bring all the FPOs & Farmers into their community, where L&T Finance will have access to this FPOs for funding. Since L&T Finance is coming with a paperless digital platform, it will ease the process of loan processing to disbursement.
“The tie-up with L&T Finance will further augment Gogreen’s underlying mission of facilitating postharvest credit between banks and farmers in rural India as well to all its depositors and business associates as well as Farmer producers company in the ecosystem,” said Gogreen’s Director and CEO, Santosh Sahu said.
Gogreen’s network of over 600+ locations across 24+ states that are under collateral management and professional warehousing, combined with L&T Finance’s spectrum of financial products and services for trade, industry, and agriculture, will be highly beneficial to the sector, Mr Sahu said.
Commenting on the tie-up, Nayana Muhawar, Head Agri and Allied business, L&T Finance stated, “LTF is already serving to a large rural customer base and recently, we have started our rural enterprise finance vertical, which includes commodity finance, among other businesses and we shall go paperless and tremendous speed of Execution.”
This tie up with Gogreen will provide a great fillip to warehouse receipt financing and will enable the farmers to get better prices for their agricultural produce by avoiding distress sales. Given the demonstrated track record of Gogreen, the partnership will enable L&T Finance to mitigate credit risk for its commodity finance product offerings, added by Mr. Asheesh.
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