Context:

=> Odisha Chief Minister Naveen Patnaik launched the common credit portal SAFAL to increase farmers’ access to loans.

What is SAFAL?

• SAFAL (Simplified Application for Agricultural Loans) is India’s first online agricultural credit facilitation portal.
• This common credit portal eases access to over 300 term loan products provided for farmers and agri-entrepreneurs.
• These term loan products will be provided by more than 40 partner banks.

What are the benefits of the SAFAL portal?

• The portal acts as a one-stop solution for farmers and agri-entrepreneurs to access loans offered by public and private sector banks, regional rural banks, state cooperative banks and small finance banks.
• It can simplify the loan application process, benefiting both the banks and farmers.
• It will minimise information asymmetry by sending real-time notification about the status of the loan to farmers at every stage of the loan application.
• It will also benefit the government by providing complete visibility of demand and disbursal of formal agricultural credit across states.
• This information will help create a data-backed government policies and schemes in the future.
• The portal will increase access to agricultural loans, which in turn will boost the farmers’ productivity and growth of agri-businesses.
• This portal has been integrated with Krushak Odisha.
• It has access to more than 70 model project reports.

What is Krushak Odisha portal?

• Krushak Odisha is an authentic database of farmers in the state, including small, marginal, and landless cultivators and agricultural labourers.
• It provides information related to the farmers’ residence, land, crops cultivated, livestock reared, and fisheries practiced.
• This information has been verified by government extension workers.
• The database aims to reduce paperwork for farmers and ease access to government services and schemes.
• The integration of Krushak Odisha portal with SAFAL portal will ensure that the banks get authentic information about farmers who are applying for credit facilities.