Farmer Producer Organisations (FPOs) Engagement

Samunnati started engaging with the FPO ecosystem from the year 2015. Since then, Samunnati has deepened its engagement to enable smallholders with activity-specific interventions through its AMLA (Aggregation, Market Linkage, Advisory) framework. Samunnati innovated this ‘framework’ to cover both financial and non-financial needs of the FPOs and more importantly, to reach the smallholder farmers effectively.

Financial Solutions

Aggregation is about facilitating FPOs to aggregate the demand of inputs and financially enable them by making these inputs available to their small and marginal farmers at their doorsteps. Market Linkage initiative by Samunnati connects FPOs with large institutional buyers and better markets, thereby to get relatively better rates for the produce.

Non- Financial Solutions

Advisory Services are to build the capacities of smallholders, thereby to make the best use of resources available and to utilize the collective platform (FPOs) for the socio-economic betterment. Samunnati is facilitating the FPOs with activities like exposure visit to successful FPOs, experts visit to motivate FPOs, training on subjects of interest like; FPO concept orientation, vision building, leadership development, business plan preparation, financial literacy, market awareness, farm, and farmers data digitization, agronomic practices and advanced farming technologies, etc.

Today, Samunnati is working with more than 450 FPOs promoted by some of the leading Indian development institutions and Foundations across 16 states.

Product Offerings to FPOs

A few of the essential products designed to suit the FPO requirements are:

  • Input Solutions (Input loan and Input Trade)
  • Procurement or Output Trade
  • Catalytic Infrastructure
  • Value additions
  • Working capital
  • Term loans
  • Trade and trade financial solutions

Credit Underwriting Process

Instead of following traditional underwriting & appraisal processes, Samunnati adopted innovative financing models and trade & trade finance approach wherein all the need-based solutions are offered without collaterals or mortgages. Samunnati is customizing solutions, providing financial sanctions and flexibility in repayment (in bulk or in easy installments).

Rate of Interest:

Samunnati solutions are for short term and activity-specific. Repayment of the loan availed by the FPO can be done in easy installments, bulk payment, paying interest on a monthly basis or repaying the principal amount at the end of tenure as per the sanctioned limits. All the financial solutions facilitated by Samunnati are on a reduced interest basis. Samunnati being an NBFC, doesn’t work on savings and insurance schemes, unlike many formal financial institutions. The rate of interest depends on the equity mobilized and loan amount taken from lending institutions. Therefore, Samunnati’s rate of interest for input/procurement – Working Capital Loan is competitively fixed at 14%.

Samunnati’s Turn Around Time (TAT) in converting financial requests into sanctions takes about 10 to 15 days.

Application for a Loan

FPOs or RI looking to avail a loan, please click on the link to start the application process.



Conditions Apply*