Union Bank Signs MOU with SFAC to boost Agriculture Finance

Mumbai, Oct 11 (UNI) Union Bank of India has entered into a MOU with Small Farmers Agri-Business Consortium (SFAC), a Society under Department of Agriculture and Cooperation of the Union Ministry of Agriculture, to give a boost to agriculture finance in the country.

Under the MOU, SFAC shall provide ''Venture Capital Assistance and Project Development Facility'' upto a maximum of Rs 75 lakh to assist Producer Groups/Entrepreneurs in setting up economically viable Agri-Business Projects with the participation of Union Bank, said an official press release issued by the Bank.

The venture capital amount will be interest free up to a period of 5 to 7 years, until it is converted into Term Loan on the date of adjustment of Bank finance.

Speaking on the occasion, R S Reddy, Executive Director of Union Bank of India said, ''Financing agriculture is a focus area for Union Bank and our Bank would increase the flow of credit to agriculture and agri processing units in participation with SFAC under the scheme.'' UNI SN PM NV1748