IFFCO Kisan Finance & Its Diversification Initiatives

Since its establishment in December 2017, IFFCO Kisan Finance Limited has been at the forefront of financial inclusion in rural India. Promoted by IFFCO, a company with over five decades of expertise, IFFCO Kisan Finance has transformed the financial landscape for rural communities. With a steadfast commitment to ethical and transparent practices, IFFCO Kisan Finance has reached over 1 lakh customers across 9 states, supported by a dedicated team of over 1500+ employees.


 

Under the visionary leadership of Mr. Ranjan Sharma (Managing Director) Mr. Anjaneya Prasad (Chief Executive Officer) and Mr. Rakesh Dhasmana (Chief Financial Officer), the company continues to thrive and innovate in the competitive NBFC sector. Their combined expertise has been instrumental in driving IFFCO Kisan Finance's success and in crafting strategies that ensure sustainable growth and customer satisfaction.

Transforming Rural Financing

IFFCO Kisan Finance Limited has carved a niche in the NBFC sector by leveraging digital innovation and operational efficiency. It offers a diverse portfolio of financial products designed to meet the evolving needs of rural India. From agricultural loans to MSME financing or Invoice discounting and commercial vehicle loans, the company has steadily broadened its reach, ensuring accessible and affordable credit for its customers.

Diversification Initiatives

In response to market dynamics and customer needs, IFFCO Kisan Finance has embarked on key diversification strategies:

Expanding Loan Products: While initially focused on tractor lending, the company has diversified its portfolio to include used commercial vehicle & further expanding to include agri implements, combine harvester and MSME loans. These new offerings now contribute significantly to the company’s fresh business, reducing concentration risk and enabling steady growth.

Supply Chain Financing: Acknowledging the distinct financial requirements of enterprises of various sizes, the organisation has initiated pilot programs in this domain. The (SCF) program acts as a conduit, offering businesses access to timely funding with more flexible terms than those typically found in traditional lending institutions. This move positions the company as a versatile lender, catering to a wider array of customer needs. 

The organization’s supply chain financing solutions aim to help businesses of all sizes, from small to large, by working with IFFCO as a strong partner. They offer customized financing options based on the business's relationship with IFFCO.

Seamless Digital Solutions

IFFCO Kisan Finance Limited has embraced cutting-edge technology to redefine convenience in financial services. Customers can now verify their loan eligibility and receive a soft-sanction in-principle letter online with ease. With instant approvals available in just 60 seconds through the company's white-label solution, the process is faster and more efficient than ever. Digital partner companies can also issue co-branded, in-principle loan offer letters, enhancing the customer experience while maintaining their brand presence.

In the near future, prospective customers will be able to check their loan eligibility and receive soft sanction letters directly via the company’s official website, further simplifying the financing process. Currently, they can easily apply for loans on the website.


Customer-Centric Approach

At the heart of IFFCO Kisan Finance’s success lies its unwavering focus on the customer. Recognizing the value of building long-term relationships, the company has implemented a comprehensive customer engagement strategy that goes beyond traditional financial services.

Through regular, scheduled interactions, the company’s field teams remain closely connected with customers, ensuring their financial needs are met in a timely and personalized manner. This focused approach has not only enhanced customer satisfaction but also significantly boosted business from existing clients. Over the past few years, the company has successfully increased its share of business from current customers from 2% to 10% of its total portfolio.

Enhanced Risk Management

To strengthen its financial stability, the company has revamped its credit risk and governance framework. By employing advanced tools like static pool analysis and implementing portfolio-level triggers, the company has reduced early delinquencies by 50%. This proactive approach ensures sustainable growth and robust risk mitigation.

The Road Ahead

With a vision of empowering rural communities and promoting financial inclusion, IFFCO Kisan Finance continues to innovate and expand its offerings. By leveraging technology, diversifying its portfolio, and maintaining a customer-first approach, the company is well-positioned to become a leader in rural financing while contributing meaningfully to India's economic growth.