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Garuda Aerospace, UBI ink partnership to provide agri drone loans to farmers and rural youth

The drone loans will be collateral-free and can secure up to Rs.10 lakhs for the youth and farmers, with three months of EMI relaxation and a 5 per cent interest rate. This advancement will enable youth to purchase drones and earn a living
Garuda Aerospace, UBI ink partnership to provide agri drone loans to farmers and rural youth
Garuda Aerospace, UBI ink partnership to provide agri drone loans for farmers and rural youth

Garuda Aerospace, a drone startup, has announced a partnership with Union Bank of India. Under this collaboration, 150 Garuda Agri Kisan Drones have been approved for a loan through the Agriculture Infrastructure Fund (AIF). The drone loan will enable farmers to use drones to digitise land record operations for crop production, spraying fertilisers, agrochemicals, growth promoters, and pesticides. The collaboration will be beneficial for lead generation, customer acquisition, application sourcing, and customer due diligence for credit deployment.

Garuda Kisan Drone has been the first to receive an Agri Drone loan from Union Minister of Agriculture and Farmers’ Welfare, Narendra Singh Tomar, in July 2022. The Agriculture Infrastructure Fund (AIF) has approximately INR 1 lakh crore in funding, of which 1000 crores have been designated for drone loans. The AIF loans are collateral-free and can secure up to Rs.10 lakhs for the youth and farmers, with three months of EMI relaxation and a 5 per cent interest rate. This advancement will enable youth to purchase drones and earn a living.

Speaking on the partnership, Agnishwar Jayaprakash, Founder and CEO, Garuda Aerospace said, “Since Prime Minister Narendra Modi ji announced the Garuda Kisan Drone Yatra in February 2022, where 100 agricultural drones flew in 100 villages across the country. Garuda’s goal for the next six months is to export 10,000 drones to 100 countries. Because Union Bank of India (UBI) has a pan-India presence and a large network of branches, the partnership with Gruda Aerospace will help provide farmer-centric agricultural products. The Agriculture Infrastructure Fund scheme will finance 150 drone applications that will benefit the farmer community while also training 150 skilled pilots to become entrepreneurs and increase farmers’ income. Garuda Aerospace has begun free training for 1 lakh youth and plans to sell 5,000 drones by March 31, 2023.”

Highlighting the objectives of the collaboration, Raj Kumar, Deputy General Manager – Madurai Region, Union Bank of India, said, “The collaboration with Garuda Aerospace for the Agri Infrastructure Fund scheme and capital subsidy under the Agricultural Mechanization Sub-Mission (SMAM), Union Kisan Pushpak Scheme was launched by the bank (Union Bank) to finance Kisan Drones for digitalisation of land records and crop production operations such as spraying of fertilisers, chemicals, growth promoters, and pesticides. This will assist farmers in increasing crop yield and boosting their income.”

Speaking on the occasion, Rajesh Kumar, Senior Manager, Katchikatti Branch (Madurai Region), Union Bank of India, said, “The collaboration with the drone manufacturing company, Garuda Aerospace is the first of its kind in the industry, and it will benefit both organisations by promoting the use of drones in agriculture and increasing credit flow to Kisan Drones. The Government of India announced several incentives for drone financing in the Union Budget 2022, which farmers and entrepreneurs can take advantage of.”

Read more: Vidisha becomes the first district to provide 5G-enabled solutions offered by startups

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