NABARD, APGB and Aqua Exchange Launch Collateral-Free IoT-Enabled Shrimp Farming Loans in Andhra Pradesh.

On August 11, 2025, the National Bank for Agriculture and Rural Development (NABARD), Andhra Pradesh Grameena Bank (APGB), and Aqua Exchange Agritech Private Limited signed a Memorandum of Understanding (MoU) in Vijayawada, Andhra Pradesh, to introduce a pilot Internet of Things (IoT)-enabled collateral-free loan model aimed at supporting shrimp farmers and promoting sustainable aquaculture.

      - The collateral-free shrimp farming loan scheme offers low-interest, no-collateral loans, integrating farmers into the formal credit system, reducing reliance on informal lenders, promoting financial inclusion, supporting sustainable aquaculture, and enhancing economic stability while boosting India’s aquaculture sector.

      - Under this pilot program, a total of Rs. 25 crores in collateral-free loans will be disbursed to approximately 100 shrimp farmers within 3–6 months. An initial tranche of Rs. 1.25 crore will be sanctioned to five selected farmers, serving as a benchmark for scaling the program. The initiative aims to demonstrate the feasibility of IoT-enabled monitoring to support lending decisions in aquaculture.

      - The program has ambitious expansion targets, with plans to disburse Rs. 100 crores in loans during the Financial Year 2025-26 (FY26) and Rs. 250 crores in FY27. These projections indicate the government and financial institutions’ commitment to integrating shrimp farmers into formal financing structures on a large scale, while boosting the productivity and sustainability of India’s shrimp farming industry.

Main Point :-   (i) A Farm Rating Score (FRS) system will be introduced to assess the creditworthiness of shrimp farmers. The FRS will serve as a benchmark for lenders under the Unified Lending Interface (ULI) of the Reserve Bank of India (RBI). This scoring mechanism ensures transparency, standardization, and easier access to formal finance for aquaculture entrepreneurs, while reducing risks for lending institutions.

      (ii) The initiative incorporates Internet of Things (IoT) technology to monitor key parameters in real-time, including water quality, feed usage, and disease prevention. By leveraging IoT devices, farmers can optimize shrimp productivity, minimize losses due to environmental and biological risks, and increase operational efficiency. The technology-driven approach marks a significant step in modernizing India’s aquaculture sector.

(iii) The NABARD, APGB, and Aqua Exchange collaboration demonstrates a public-private partnership enhancing agricultural financial inclusion. NABARD guides policy and funding, APGB manages grassroots loan disbursement, and Aqua Exchange provides IoT support, promoting sustainable aquaculture, formal credit, and technology integration in rural finance.
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