Banking and payment solutions provider VSoft Technologies has tied up with cooperative banks in Odisha and Gujarat to offer need-based small loans to farmers through kisan credit cards.
The company claims that the solution will help farmers pay less interest on loans through Kisan credit cards and withdraw money as per their needs.
The company launched this solution on July 5 in Odisha where it has tied up with 17 cooperative banks, VSoft said.
The company has joined hands with a cooperative bank in Gujarat.
Banks issue kisan credit cards to farmers who are eligible for sanction of short-term loans crop production, allied activities and other non-farm activities.
“Farmers will be able to benefit because it will avoid them paying interest on the whole one-time lump-sum credit off-take for a particular crop season,” Murthy Veeraghanta, the Chairman and CEO of Vsoft Technologies, said in an interaction.
The solution works through kisan credit cards and farmers will be charged interest only on the small size withdrawal than the entire loan amount.
The company’s automation solutions are helping in fast approval of loans to farmers as all the information is sent digitally and is approved through electronic mode only, he added.