Jain Irrigation gets RBI nod for setting non-banking financial company

The NBFC— Sustainable Agro-commercial Finance—will focus its activities on farms and farmers only and operate in the rural and semi-urban geographies of the country says Jain Irrigation

Mumbai: Micro irrigation major Jain Irrigation Systems (JISL) said on Friday that it has obtained regulatory approval from the Reserve Bank of India (RBI) to launch a non-banking financial company (NBFC), named Sustainable Agro-commercial Finance (SAFL), reports PTI.

The NBFC, to commence business activities in the post monsoon period, will focus its activities on farms and farmers only and operate in the rural and semi-urban geographies of the country, JISL said in a release.

SAFL will be the first NBFC in the country to provide agri-loans with a wide and diverse range of financing options for almost every agricultural need.

The main products will include MIS financing, agri-project financing, contract farming, small business loans, solar pumps and appliances financing, third party tie-ups among others.

SAFL, headquartered in Mumbai, is in an advanced stage of setting up around 25 offices in Maharashtra by the end of August.

The NBFC is targeting 40 offices in Maharashtra by December 2012.

Subsequently, in the second phase, offices will also be opened in the states of Karnataka, Andhra Pradesh, Tamil Nadu, Gujarat, Madhya Pradesh and Rajasthan.

Phase three will cover offices in the remaining states.

A pan-India presence through a network of around 150 offices is envisaged in a period of three to four years.

SAFL is a joint venture between Jain Irrigation and International Finance Corporation (IFC), a member of the World Bank Group, as equity shareholders with some banks and financial institutions joining the equity shareholding at a later stage.

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