Public sector Bank of Baroda has inked a pact with EM3 Agri Services to give loan to farmers and rural entrepreneurs for purchase of farm equipment and related machinery.
BoB said the pact has been signed keeping in mind the government focus on doubling farmers' incomes by 2022.
The loan service will help create an ecosystem to provide end to end solutions to farmers, BoB said in a statement.
Besides farmers, joint-liability groups, self-help groups, farmer producer organisations (FPOs) and small rural entrepreneurs will also be able to take loans to buy farm machinery and farm equipment.
EM3 offers farm mechanisation services like land preparation, transplantation/sowing to crop harvesting and post-harvest management for small hold farmers on a pay-per- use basis.
"Memorandum of understanding with EM3 Agri Services is to work jointly and to provide loans to farmers who will be franchisee of the company for purchase of farm machinery and farm equipment for crop production and farm mechanisation," said G B Bhuyan, Head- Rural & Agri Banking and CSR, Bank of Baroda said.