DFC AND USAID COLLABORATED TO SPONSOR A $55 MILLION CREDIT GUARANTEE PROGRAMME

DFC AND USAID COLLABORATED TO SPONSOR A $55 MILLION CREDIT GUARANTEE PROGRAMME

Context:

On September 24, 2021, the US International Development Finance Corporation (DFC) and the United States Agency for International Development (USAID) have jointly decided to sponsor a $55 million credit guarantee programme in India.

About the Programme:

• This credit guarantee program seeks to address the economic impact of covid-19.
• It will support lending to farmers' production organizations, ag-tech companies, and companies involved in clean energy solutions in the agricultural sector.
• It will introduce and support clean technologies for small-holder farmers, especially women, that improve market linkages and increase incomes while having a positive impact on the environment.
• The financial support will be accompanied by technical assistance led by the Rabo Foundation to focus on areas of business management and help in building stronger linkages to the markets.
• Loans to farmer producer organizations will be given by 3 Indian lenders—Maanaveeya, Samunnati Financial, and Avanti Finance.

Why was this initiative introduced?

• The program was launched because USAID believes that providing farmers with access to clean and affordable technology will improve the health and resilience of the climate. Clean technology also provides a sustainable alternative to meeting agricultural needs, tackling food insecurity and improving health outcomes. This subsidy program will address the health and economic needs of communities of vulnerable farmers.