ICICI Bank to use satellites or credit assessment of farmers

Business

ICICI Bank (ICICI Bank) is going to be the first bank in the country to use satellite data for credit assessment of farmers. ICICI Bank is one among few banks doing this in the world. The bank made an announcement that it would use satellite data-imagery orbiting the Earth to assess the credit worthiness of its customers in the agricultural sector. This will help the bank to make quick decisions on loan applications by knowing their credibility. This will also help farmers to avail loan easily.

 

Through satellite data-imagery, the bank will be able to verify the land of farmers with great ease. It will reduce the time taken to evaluate the loan which usually takes 15 days. This will not require the customer and bank officials to visit the land to know the patterns of crop, soil and irrigation from remote areas. Apart from this, it will save logistic costs and get reliable information.

ICICI has used satellite data for more than 500 villages in Madhya Pradesh, Maharashtra and Gujarat in the past. It aims to use satellite data for more than 63,000 villages soon. The bank has partnered with agri-fintech companies in this scheme. Agri-fintech have expertise in commercial use of space technology and weather information detection. It will help bank to study the soil, irrigation and crop patterns, assess the credibility of farmers and prepare reports with more than 40 criteria.

The bank will obtain data by satellite to find the credit score of the farmers. These include data on rainfall and temperature in previous years, soil moisture level, availability of water, complete description of location of agricultural land, trend of crop change and many more.

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