Collateral-free shrimp crop loan scheme launched in A.P.

Andhra Pradesh Grameena Bank (APGB), in collaboration with the National Bank for Agriculture and Rural Development (NABARD) and AquaExchange Agritech Private Limited, launched collateral-free shrimp crop loans for aquaculture farmers, on Monday. The formal launch took place at AquaExchange’s Veeravalli premises near Hanuman Junction in Krishna district.

As part of the NABARD–AquaExchange MoU, the partners will develop a standardised shrimp farming rating score (FRS), providing a benchmark for the formal finance sector to assess aquaculture creditworthiness. This FRS is expected to play a crucial role in integrating aquaculture lending into the Unified Lending Interface (ULI) envisioned by the Reserve Bank of India (RBI).

Under the APGB–AquaExchange agreement, ₹25 crore worth of collateral-free crop loans will be disbursed to around 100 shrimp farmers over the next 3 to 6 months. The first tranche — ₹1.2 crore — was sanctioned on Monday to five farmers from various regions. AquaExchange plans to expand disbursements to ₹100 crore within the current financial year and ₹250 crore in the next.

The launch coincided with a farmers’ meet attended by over 100 shrimp farmers from across Andhra Pradesh. The event also showcased AquaExchange’s aquaculture automation technologies, designed to improve yields, reduce risks, and enhance profitability.

Under this programme, APGB will extend low-cost, collateral-free working capital loans to shrimp farmers via AquaExchange, which will also offer crop disease insurance. An MoU was signed between NABARD, APGB, and AquaExchange in the presence of senior dignitaries.

The dignitaries included A.K. Sood, Deputy Managing Director, NABARD; A.V. Bhavani Shankar, CGM, NABARD; Mani Kumar, CGM, NABARD; M.R. Gopal, CGM, NABARD; Renu Nair, General Manager, Union Bank of India; Pramod Kumar Reddy, Chairman, APGB; AquaExchange founder and CEO Pavan Kosaraju, co-founder & COO Hemasundar D., and co-founder & CBO Kiran Kumar Bandi and others were present, according to a press release.