Delhi-based agri logistics and warehousing company Sohan Lal Commodity Management (SLCM) Ltd has tied up with local lender Yoma Bank for a collateral financing deal, the Indian firm said.
Through this agreement, SLCM would extend financial solutions support to farmers, processors, traders, agriculture exchanges, exporters and importers across Myanmar.
Yoma Bank will offer farmers to pledge 60 percent of their commodities, stored at SLCM’s warehouses, for a certain period at an interest rate of 13 percent.
The deal makes SLCM – which provides agri-commodity warehouse management, procurement, logistics and financial solutions to farmers, processors, traders and agri exchanges – the first warehousing company from India to provide financial support in the ASEAN, the firm said in a statement.
Sandeep Sabharwal, group CEO, SLCM said Yoma Bank’s support for the collateral management services will facilitate the entire business fraternity.
“This association will certainly redefine the agri-financing and logistics space in the country,” he said.
Daw Aye Aye Soe, executive director of Yoma Bank, said, “We are arranging to provide pledge loan against commodities such as machines, commercial goods and agri commodities to our SME’s to get competitive price.
“The move will dissolve the legacy practice of mortgaging assets to generate funds and will provide financial stability to farmers and all others related to agri and commodity sectors in Myanmar.”
At the official signing ceremony held at UMFCCI, Sunil Seth, country head Tata International, said, “This is the right step taken by SLCM Ltd for further development of infrastructure and economy of Myanmar.”