SBH signs MoU with Heritage Foods

HYDERABAD: State Bank of Hyderabad and city-based Heritage Foods India Limited on Friday entered into an MoU for financing dairy farmers in the state.As per the MoU, SBH will extend credit to farmers who will supply milk to Heritage, said Renu Challu, managing director of the SBH. "Heritage will buy milk from these farmers and facilitate repayment of the bank’s loan," she told reporters here. Renu Challu said the MoU between SBH and Heritage Foods would help strengthen the SBH initiatives in providing financial assistance to farmers to set up cattle farms in rural areas under Nabard scheme. “We will give Rs 5 lakh loan to each farmer and there will be Rs 1 lakh subsidy by Nabard,'' she added.Heritage Foods president Sambasiva Rao said the company will identify farmers who are eligible for loan and help them by providing veterinary support for selection of buffaloes and cows besides other necessary training. He said the MoU is valid for one year with renewable option and the company will have an assured supply of milk.