Agri-logistic and warehousing firm Sohan Lal Commodity Management (SLCM) today announced entry into agricultural financing from next fiscal with an initial capital infusion of Rs 50 crore.
SLCM said that it has recently acquired Chennai-based non -banking finance company BP Jain Finance & Investments for launching agri-loans to farmers and traders. The company has all the requisite approvals in place.
"SLCM will infuse an initial amount of Rs 50 crore in the NBFC to augment its capital base. SLCM is targeting to build a book of Rs 400 crore during the next financial year from warehouse receipt financing and other agri financing," the company said in a statement.
At present, SLCM offers procurement and storage facilities for over 50 agri products across major states. It would now provide loans to entire agri community against their farm output stored at the company's warehouses.
The credit facility will be offered as 'Kissan Dhan' and the loans against warehouse receipts would be provided at a competitive interest rate.
SLCM CEO Sandeep Sabharwal said: "With the launch of Kissan Dhan, we have become the first company in this sector to provide finance against farm products after arriving at valuation of the goods stored, using collateral at risk model."
Delhi-based SLCM has presence in over 70 locations across 20 states with 100 plus warehouses in India. Venture capital firms Nexus Venture Partners and Mayfield Fund have invested in the company.
The company is diversifying its portfolio in line with the strategy to offer end-to-end solutions across the entire agri value chain to customers.
