Tag Archives: MSME loan

Leveraging Supply Chain Finance for Small Agri MSMEs

July 10, 2025

India’s agri-MSME sector plays a vital role in supporting the agricultural economy, accounting for nearly 33% of total MSMEs in the country. Despite this, over 80% of small agri-businesses face challenges in accessing timely and affordable credit, which hampers their ability to expand, invest in technology, and build resilient supply chains. This is where supply chain finance (SCF) emerges as a transformative solution—enabling agri-MSMEs to unlock working capital, optimise cash flows, and strengthen trade relationships.

At Agriwise, we recognise that efficient financing is key to empowering India’s agri-value chain. Through structured and digital-first finance solutions, Agriwise supports small enterprises—be it farmer producer organisations (FPOs), agri-input dealers, aggregators, or processors—with the liquidity needed to thrive in a competitive market.

What is Supply Chain Finance?

This finance refers to a set of financial solutions that optimise cash flow by allowing businesses to extend their payment terms to suppliers while enabling suppliers to get paid earlier. It is particularly beneficial in agri-supply chains where seasonal production cycles, inventory turnover, and delayed payments often create liquidity stress for small businesses.
Unlike traditional bank loans, SCF is transaction-based and tied to actual trade flows. This reduces credit risk and ensures that working capital is aligned with real business needs.

Why Supply Chain Finance is Critical for Agri MSMEs?

Small agri-MSMEs often operate on thin margins, limited collateral, and unpredictable cash flows. This creates major financing bottlenecks, especially when trying to scale operations, purchase inputs in bulk, or fulfil large buyer contracts.
Here’s how it addresses these challenges:

  • Improved liquidity and working capital: With SCF, small businesses can receive payments faster without waiting for buyers to settle invoices. This quick infusion of working capital improves day-to-day operations, enhances supplier confidence, and reduces dependency on informal credit.
  • Lower financing costs: Since SCF is typically buyer-led and risk is mitigated through transactional visibility, lenders offer lower interest rates than unsecured loans. Platforms like Agriwise use data analytics to assess real-time risks, ensuring fair pricing for MSMEs.
  • Strengthened buyer-supplier relationships: SCF encourages long-term, stable relationships between buyers and suppliers. When MSMEs are assured of quicker payments, they can deliver better service and maintain quality standards, strengthening their position in the agri-ecosystem.
  • Digital traceability and transparency: Digital SCF platforms like Agriwise provide end-to-end visibility on invoices, payments, and credit terms—enabling MSMEs to plan production and procurement efficiently. It also builds trust among stakeholders across the value chain.

supply chain finance

Agriwise: Bridging the Finance Gap for Agri MSMEs

Agriwise Finserv has been at the forefront of enabling agri-MSMEs with targeted financial tools that meet their evolving needs. Our supply chain finance solutions are customised to support:

  • Input suppliers catering to large farmer clusters
  • FPOs engaged in aggregation and contract farming
  • Agri processors procuring from multiple geographies
  • Retailers and distributors across rural markets

By combining traditional credit underwriting with digital data from agribusiness operations, Agriwise ensures that even first-time borrowers can access structured credit linked to their trade activity. Our approach reduces approval time, minimises documentation, and promotes financial inclusion at scale.

Future of SCF in Indian Agri Ecosystem

With the government’s focus on formalising the agri-value chain through eNAM, ONDC, and FPO promotion schemes, the demand for agile credit solutions like supply chain finance is set to grow. As per industry estimates, the Indian supply chain finance market could exceed ₹60,000 crore by 2026, with agri-MSMEs representing a large untapped segment.

Agriwise Finserv is playing a key role in democratising access to SCF by leveraging alternate data, satellite insights, and mobile-first platforms that reach the last mile. By embedding finance into agri-transactions, they are turning every invoice into a growth opportunity.

Conclusion

Supply chain finance is no longer a luxury—it is a necessity for agri-MSMEs navigating volatility, input inflation, and delayed receivables. With smart financing solutions from Agriwise, small agri-businesses can unlock new markets, invest confidently, and contribute more meaningfully to India’s agricultural growth story. As the agri sector continues to digitalise and integrate, leveraging supply chain finance will be key to building resilient, efficient, and inclusive value chains.

How Agri MSMEs Loans Can Accelerate Growth & How Agriwise Can Help?

June 19, 2025

Indian agriculture is undergoing a technological transformation, powered by agripreneurs and small rural enterprises. An agri MSME loan, specifically for farming-related services such as processing, logistics, warehousing, and input distribution, is central to this evolution.

As of FY 2024–25, credit outstanding to MSMEs reached ₹31.3 lakh crore across 2.45 crore accounts, while agricultural and allied sector credit grew 17% YoY to ₹35,547 crore. Collateral-free loan limits under the Kisan Credit Card scheme were also increased to ₹2 lakh, and co-lending for agri and MSMEs surged sevenfold to ₹11,497 crore. These figures indicate not just rising demand, but a growing ecosystem of financial solutions that agri businesses can leverage. Among them, a term loan for an agriculture business stands out as a powerful tool to scale operations. With partners like Agriwise, accessing the right funding at the right time has never been more attainable.

Unlocking Growth Through MSME Loans

A well-structured MSME loan for agribusiness can do more than just cover expenses. It can unlock growth opportunities, create jobs, and increase rural incomes. Unlike short-term working capital loans, term loans provide longer repayment periods and are ideal for funding capital-intensive projects.
Agri MSMEs can use these funds to modernize their operations, invest in post-harvest technologies, build cold storage facilities, or adopt digital tools that improve traceability and supply chain efficiency. For businesses engaged in export or contract farming, such funding helps meet compliance standards, packaging upgrades, and quality certifications.

The real value, however, lies in how efficiently the loan is structured and delivered—something that traditional banking systems often fall short on, especially in rural areas. That’s where Agriwise steps in.

 

Agriwise: Empowering Agripreneurs with MSME Loans

As a focused agri-fintech company, Agriwise is building a smarter, faster, and more accessible ecosystem for credit delivery. It offers tailored financing options to agri MSMEs by understanding the seasonality, risks, and unique cash flow patterns of agriculture-linked businesses.

From agriculture business loans to customized term loans for machinery, input finance, and supply chain enhancement, Agriwise has developed products that directly address the needs of rural enterprises. Their tech-driven underwriting process ensures faster turnaround times, reduced paperwork, and greater transparency.
Moreover, agripreneurs can tap into government schemes for agri MSME loans, such as the Agriculture Infrastructure Fund or the MUDRA Yojana, for advisory support, eligibility guidance, and application facilitation. This is especially valuable in areas where awareness of such schemes remains low.

Driving Rural MSME Development

India’s rural economy is rich with entrepreneurial potential. By expanding access to formal credit through term loans, companies like Agriwise are playing a significant role in rural MSME development. These loans are not only financing business growth but also improving livelihoods, enhancing food value chains, and promoting rural employment.
The availability of a loan for agri entrepreneurs at the right time enables businesses to prepare for harvest seasons, invest in warehousing, or hedge against price volatility. For instance, small rice mills or groundnut processors can scale up with minimal delays when empowered with timely funding.

The key to success lies in matching the right loan product to the specific stage and scale of the business. Agriwise’s data-led approach and deep sector understanding help ensure that the loan fits the business model, repayment capacity, and growth outlook.

 

Understanding Agri Loan Eligibility Criteria

If you’re exploring how to fund your agribusiness expansion, it’s essential to first understand the agri loan eligibility criteria. Typically, a business must be registered and engaged in agriculture or allied services, have a verifiable income stream, basic KYC documents, and a clean credit history. For secured loans, collateral like property or agricultural assets may be required.

Agriwise has streamlined this process to make it entrepreneur-friendly, even for first-time borrowers or small-scale operators. Whether you’re a dairy unit in Maharashtra, a cold storage facility in Punjab, or a millet processor in Karnataka, the right financial product is just a few steps away.

msme loan

Strategic MSME Loan Usage: How to Grow Agri MSME with Credit

Knowing how to grow an agri MSME with a loan starts with smart planning. Map out your business goals—whether it’s expanding your processing line, entering a new market, or investing in sustainable practices. Choose a loan amount and tenure that aligns with your cash flow, and always factor in interest obligations and repayment timelines.
Used wisely, a term loan for agriculture business not only bridges financial gaps but also builds long-term resilience. It helps shift agri MSMEs from informal to formal systems, making them eligible for future credit, partnerships, and public-private initiatives.

Best Term MSME Loan Options for Farmers

While banks and NBFCs do offer generic business loans, what sets Agriwise apart is its sharp focus on agriculture. If you’re seeking the best term loan options for farmers, processors, or agri-distributors, Agriwise offers products that match ground realities. This includes seasonal repayment schedules, interest subvention guidance, and integration with agri-tech platforms.

With India pushing towards formalization of rural credit, digital inclusion, and food security, now is the time for an agri MSME loan for growth. Agriwise is leading this charge with purpose-driven finance for India’s agricultural entrepreneurs.

Conclusion

A loan for agri entrepreneurs is not just capital—it’s a catalyst for change. With Agriwise as a partner, agri MSMEs can access the resources they need to expand, innovate, and contribute meaningfully to India’s rural economy. Whether you’re planning your first investment or scaling your existing business, term loans offer a dependable path forward.