Northern Arc works with NBFCs and various players in the Indian agricultural value chain who require financing for activities such as input supply, production, distribution, wholesale, processing and marketing.

By offering innovative and customised financing solutions in this space we believe we will help open the agriculture financing space to investors while ensuring that the benefits of financing trickle down to the last mile farmer.

The total demand for agriculture credit is estimated at USD 120 billion. Commercial banks provide more than 70 percent of all credit. Close to 70-75 percent of agriculture advances are crop loans, provided under various interest subsidy schemes of the Government of India. Reasons for lack of access to credit include seasonality, volatility in prices, lack of collateral, and perishability.

While lending to the agricultural sector has always been challenging, given the Government reforms and size of the business opportunity in this sector, we believe this sector has the potential to grow into a sizable business opportunity in the future.