Tag Archives: NBFC

Agri-fintech 2.0: How technology is redefining access to finance for India’s agri value chain

November 12, 2025

In Indian agriculture, agri FinTech is emerging as a transformative force, reshaping the way farmers and value-chain stakeholders access finance, manage risk, and scale operations. With increasing digitization, the entry of digital agri loans, and the rise of AI in agri finance, the sector is on the cusp of a new era: Agri-fintech 2.0. At Agriwise Finserv, our commitment to enabling this change through tailored agriwise loans and embedded finance solutions is more than a business priority—it is a strategic imperative for India’s food security and inclusive growth.

The urgency: A credit gap in India’s agriculture

India’s agriculture sector is the backbone of the economy, yet access to institutional credit remains limited. Only around 30% of farmers are reported to access formal financial services, leaving a significant 70% underserved. Meanwhile, credit flow from mainstream institutions, referred to as Ground-Level Credit (GLC), has increased, rising from ₹8.45 lakh crore in FY15 to ₹25.49 lakh crore in FY24. These figures illustrate the gap that agri fintech in India is designed to close.

Traditional lenders face multiple barriers, including a lack of detailed farm-level data, informal supply chains, high transaction costs, and land-title challenges. But as digital adoption increases, agri lending platforms in 2025 are turning these challenges into opportunities.

What does agri fintech 2.0 look like?

The shift to agri fintech 2.0 is characterised by deeper digital integration across the agri value-chain:

Digitized credit underwriting: Platforms are now utilising remote sensing, geo-tagging of farmland, crop history, and supply-chain data to build borrower profiles and extend digital agri loans more efficiently.
AI in agri finance: AI-powered scoring engines enable faster loan approvals by automating income estimation, document verification, and risk profiling for assessing the loan proposals.
Embedded finance in value chain: Loans and working capital are no longer standalone but embedded into procurement, warehousing and trade flows—ensuring that agri lending platforms 2025 can offer tailored, context-aware financing.
Digital public infrastructure (DPI) & data stack: Schemes such as the Digital Agriculture Mission support farm registries, crop-sown registries, and digital mapping, forming the backbone for innovative credit systems.

Impact on the agri value-chain

The benefits of this transformation ripple across the agri value-chain:

Improved reach and inclusion: With digital onboarding and AI-driven assessment, small and marginal farmers gain access to formal credit instruments, where they were previously locked into high-cost informal finance.
Lower transaction cost, better risk management: Through data-driven underwriting, platforms can lower default risk and reduce the cost of service, making smaller ticket loans viable.
Faster credit cycles tied to crops: Instead of waiting for monsoon or harvest, farmers can access working capital or input-financing aligned with crop stages, improving productivity and timely input usage.
Market linkages and value realisation: When finance is tied to transactions (procurement, warehousing, sale), the farmer’s income and cash-flow improve, supported by technologies embedded in agri fintech models.
For agribusinesses and downstream players: Better financial access means smoother procurement, reduced risk of delayed payments, and stronger supply-chain reliability.

Role of Agriwise Finserv in this ecosystem

At Agriwise, we understand the nuanced requirements of agri-business—whether in procurement, warehousing, export trade or input supply. Our Agriwise loans are built on three pillars:

Tailored underwriting: Leveraging alternative data (farm history, warehouse receipts, geospatial insights) to deliver credit even for non-traditional borrowers.
Embedded finance: Financing solutions integrated with supply-chain partners, enabling our clients and their farmer-vendors to transact seamlessly.
Technology-enablement: Use of digital platforms to minimise paperwork, speed disbursement, and monitor utilisation for making finances work in real time for farming cycles.
Tech-based monitoring tools are being integrated to predict potential delinquencies, assess commodity price volatility, and trigger early warning alerts to safeguard portfolio quality.

Outlook & key trends for 2025 and beyond

The outlook for agri fintech in India is optimistic and rapidly evolving:

The agritech-fintech ecosystem is expected to witness strong growth, underpinned by increasing smartphone and internet penetration in rural India.
With formal agricultural credit projected to exceed ₹31.5 lakh crore by FY26, the space for digital agri loans and tech-enabled credit is growing significantly.
Adoption of AI, remote-sensing and blockchain in supply-chain finance will drive new models of agri lending platforms 2025, where financing flows are dynamically priced, risk-adjusted and tightly integrated into farm ecosystems.
The convergence of agri-fintech with climate-resilient agriculture, ESG-driven capital flows and green finance will open additional channels for farmers and agribusinesses to access credit and insurance.

Conclusion

The era of Agri-Fintech 2.0 is not a distant vision—it is unfolding now. For India’s agrarian economy, the opportunity to democratise access to finance, reduce dependence on high-cost informal credit, and unlock the full potential of the agri value-chain is immense. Through technologies like AI in agri finance, digital agri loans and embedded finance models, agri fintech is redefining how money flows in agriculture.

At Agriwise, our Agriwise loans serve as a bridge linking farmers, agribusinesses and financial institutions in a smarter, faster and more equitable ecosystem. As we move into 2025 and beyond, the promise is clear: inclusive credit, resilient value chains and sustainable growth, enabled by agri fintech in India. Investing in this future today means more than financing—it means building prosperity, securing livelihoods and transforming agriculture for generations to come.

Disclaimer

The content published on this blog is provided solely for informational and educational purposes and is not intended as professional or legal advice. While we strive to ensure the accuracy and reliability of the information presented, Agriwise make no representations or warranties of any kind, express or implied, about the completeness, accuracy, suitability, or availability with respect to the blog content or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. Readers are encouraged to consult qualified agricultural experts, agronomists, or relevant professionals before making any decisions based on the information provided herein. Agriwise, its authors, contributors, and affiliates shall not be held liable for any loss or damage, including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from reliance on information contained in this blog. Through this blog, you may be able to link to other websites that are not under the control of Agriwise. We have no control over the nature, content, and availability of those sites and inclusion of any links does not necessarily imply a recommendation or endorsement of the views expressed within them. We reserve the right to modify, update, or remove blog content at any time without prior notice.

Green finance in agriculture: The next big leap for sustainable growth

November 07, 2025

As India strives to boost agricultural output while protecting the environment, a new force is quietly reshaping the sector—green finance. Could the future of farming lie not just in better seeds or machinery, but in smarter, eco-friendly funding?

With agriculture contributing nearly 18% to India’s GDP and supporting over 40% of the workforce, the potential impact of sustainable agri finance is enormous. From renewable energy adoption to climate-resilient farming, green finance is opening doors to opportunities farmers never imagined. Green finance, with investment flows directed toward environmentally friendly and climate-resilient initiatives, is transforming the way the sector produces, manages, and sustains growth.

Understanding green finance in agriculture

Fundamentally, green finance in agriculture refers to financial instruments and investments that promote sustainable agricultural practices, reduce carbon emissions, and enhance resource efficiency. It includes credit support for renewable energy adoption, efficient irrigation systems, low-emission machinery, organic farming, and waste management solutions.

In India, the focus on sustainable agri finance has gained momentum following policy initiatives such as the National Mission on Sustainable Agriculture (NMSA) and the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM). These programs aim to encourage farmers to adopt renewable technologies like solar-powered irrigation and climate-resilient crop practices—key areas where green finance plays a pivotal role.

Why green finance matters for India’s agricultural future?

Traditional agricultural credit models often overlook environmental sustainability. However, the rising frequency of climate shocks—droughts, floods, and erratic rainfall—has underscored the urgent need for climate-smart agriculture in India. According to the World Bank, climate change could reduce India’s agricultural income by up to 25% by 2050 if adaptive and sustainable measures are not adopted.

Green finance bridges this gap by offering innovative credit structures and risk mitigation mechanisms that enable farmers and agri-enterprises to invest in sustainable technologies. From solar financing in India for water pumps to carbon-neutral warehousing and biofertilizer production, green finance acts as both a growth driver and a climate safeguard.

Market momentum and growing investments

The green finance ecosystem in India is witnessing rapid growth. As of December 2024, India’s cumulative aligned green/social/sustainability (GSS+) debt issuance stood at USD 55.9 billion, up 186% since 2021. Green bonds accounted for around 83 % of this volume.

While the agriculture‑specific breakdown for green finance is less frequently available, the broader momentum in sustainable capital flows is a strong signal for opportunity in the agri‑space. The development of India’s draft climate taxonomy and regulatory frameworks is expected to channel more capital into green agricultural activities in coming years.

Role of Agriwise & other NBFCs

Non-Banking Financial Companies (NBFCs) are playing a crucial role in driving green finance in agriculture by bridging last-mile credit access. Agriwise, for instance, has been actively promoting sustainable agri finance solutions tailored for farmers, agribusinesses, and supply chain partners.

Through Agriwise loans, farmers can access structured financial products to invest in renewable technologies, efficient irrigation systems, and sustainable farm inputs. The company’s focus on digitized lending and agri-data analytics allows it to assess borrower risk more accurately, ensuring faster and more transparent loan approvals.

Such technology-driven financing models are pivotal in empowering farmers to shift toward climate-smart agriculture in India without facing the traditional credit barriers of collateral-heavy systems.

Green finance and renewable energy in agriculture

One of the most compelling applications of green finance in agriculture is in renewable energy adoption. Farms and rural agri‑units in India still rely heavily on diesel‑based irrigation pumps, contributing both to high fossil‑fuel costs and greenhouse‑gas emissions. Transitioning to solar‑powered alternatives via solar financing in India is not only cost‑effective for farmers but also pivotal for climate mitigation.

The government’s ambition — including targets such as installation of 10 GW of solar capacity through agricultural applications by 2030 — underscores the potential scale of opportunity. While specific agriculture‑loans data is limited, the broader driver is clear: renewable‑enabled farms benefit from reduced energy cost, reduced risk of fuel‑price shocks and improved sustainability.

Challenges and the road ahead

Despite its promise, green finance in agriculture faces several challenges—limited awareness among farmers, lack of standardized green credit frameworks, and the perception of high implementation costs. However, with increasing public-private partnerships, carbon credit opportunities, and the rise of ESG (Environmental, Social, and Governance) investing, the momentum is shifting positively.

To scale impact, policymakers and financial institutions must integrate sustainability metrics into credit assessment models. Simultaneously, digital platforms like Agriwise can continue leveraging data-driven tools to promote transparency and inclusivity in green lending.

Conclusion: The future of sustainable agri finance

The integration of green finance into India’s agricultural ecosystem is not just an environmental necessity—it is an economic imperative. By unlocking access to capital for sustainable practices, the sector can enhance productivity, build resilience against climate change, and ensure long-term profitability. As initiatives around sustainable agri finance, renewable energy, and climate-smart agriculture in India continue to evolve, the role of innovative financiers like Agriwise becomes increasingly vital. With tailored Agriwise loans and forward-looking credit models, India’s farmers can be at the forefront of the next big leap—toward a greener, more resilient agricultural future.

Disclaimer

Financing agritech startups in India: What farmers and MSMEs should know?

October 30, 2025

Agritech startups are reshaping how Indian agriculture works — from digital marketplaces and precision farming tools to alternative credit models and supply-chain traceability. For farmers and MSMEs looking to partner with or benefit from these new players, understanding how agrifinance works and where to find reliable agri-financial services is essential.

Why funding matters for agritech startups?

Access to capital fuels product development, field pilots, and wider farmer adoption. In recent years, funding for agritech startups has stabilised after a period of rapid deal activity: AgFoodTech reports show investments staying relatively flat in 2024 with a focus on mature companies, while Indian startup funding momentum continued in H1-2025, driven by larger checks to scaleups.

For farmers and MSMEs, this means startups you engage with are more likely to be past the “idea” stage and closer to delivering reliable services — but also that investors expect clear unit economics, repeatable revenue, and strong farmer outcomes.

Key finance types agritech startups use

Equity funding (angel, VC, growth) — fuels scaling, hiring, product R&D and Technology
Debt & credit lines — working capital from banks, NBFCs, financial institutions or specialised lenders (useful when startups provide credit-linked services to farmers).
Grants & concessional capital — from foundations, climate funds, or government incubators for pilot projects.
Trade and supplier finance — for startups handling procurement, warehousing or agri input distribution.
SCF/ Channel Financing: Working capital against the Invoices raised by the seller to buyers, for the procurement of raw materials.

Understanding the mix matters because it determines how aggressively a startup will pursue growth, the pricing of services, and its tolerance for long sales cycles.

What farmers and MSMEs should check before partnering?

Funding stability & runway: Companies backed by steady capital are likelier to support long rural sales cycles. Recent market analyses indicate many agritech startups raised larger, selective rounds in 2024–25, signalling a move toward consolidation and sustainable scaling.
Regulatory & credit links: If a startup offers credit or payments, confirm partnerships with credible agri financial services providers, NBFCs or banks (for example, an agriculture loan company or an agri finance India partner). Government schemes like the KCC remain central to short-term crop credit.
Farmer outcomes & traceability: Look for measurable yield or income gains and transparent pricing. Satellite and digital advisory integrations are increasingly common and backed by case studies.
Ease of accessibility: The platform should be user-friendly and easily accessible via mobile apps, in regional languages, and with simple onboarding processes suitable for rural users.
Simplified documentation: Startups that minimise paperwork through digital KYC, Aadhaar-based verification, and e-agreements ensure quicker access to finance and services.
Market linkage & buyer connectivity: The startup should offer direct market access, connecting farmers or MSMEs with buyers, traders, or processors to improve price realisation and reduce dependence on middlemen.

How do agrifinance products differ from standard loans?

Agrifinance products are tailored for the crop cycle: flexible repayment schedules, collateral-free microloans, warehouse-receipt financing, or input-linked credit. An agrifinance company in India that understands seasonal risk and local value chains can offer better terms than a generic lender. For MSMEs, trade finance or invoice discounting is often a better fit than term loans.

Where to find trustworthy partners?

Search for startups that disclose investor names, banking partners, and audited pilots. Industry trackers show that India will host well over a thousand agritech startups by 2025 — a sign of both opportunity and the need for careful selection.
Look for endorsements from NABARD, local agri departments, or reputed incubators. NABARD and other agencies continue to expand priority sector credit, improving formal agricultural finance flows.
Compare offerings from agri financial services players like the terms, interest, processing transparency and then consider the best agrifinance company India only after mapping service coverage to your needs.

Role of Agriwise

NBFCs like Agriwise agrifinance bridge the gap between farmers/MSMEs and capital by packaging tailored products — from agri business loans India to integrated insurance and receivables financing. When evaluating an agriculture finance or agrifinance partner, check product examples, default management practices, and whether they operate as an agriculture loan company or as a facilitator with bank/NBFC backing.

Practical tips before taking or offering credit

Ask for a clear amortisation schedule tied to crop cycles.
Ensure documentation is simple and available in local languages.
Verify whether the provider reports to credit bureaus — helpful for building a borrower’s credit history.
For startups offering buy-now-pay-later or embedded credit, confirm recourse and late-fee structures.

Conclusion

Agritech startups offer transformative services, but financing shapes how durable those services will be for farmers and MSMEs. By focusing on transparency, proven outcomes, and partnerships with credible agri financial services and agriculture loan companies, stakeholders can tap into a market where formal agri credit is projected to grow strongly through 2025 and beyond. Whether you’re a farmer seeking input finance or an MSME evaluating a tech partner, prioritise due diligence — and consider partners like Agriwise when scouting for reliable, agriculture-focused funding solutions.

Disclaimer

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.

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.