Sustainable agriculture

In a typical rural setup, households need a sizable expansion of credit for investing in agriculture and cushioning seasonal fluctuations in earnings. However, the use of high-yielding varieties, fertilizers and other improved inputs entails higher capital deployment.

Since cash flow and savings for the majority of households in rural areas are small, farmers and even agrarian reform beneficiaries tend to heavily rely on credit for other basic consumption needs like food and education. They also need access to financial institutions that can provide them with lower credit rates at more reasonable terms compared with traditional moneylenders that only place them in debt traps. This is where the rural banks step in.