June 16, 2024

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ICICI Bank to use satellite data to assess credit worthiness of farmers

Personal sector loan provider ICICI Financial institution will use satellite data—imagery from Earth observation satellites—to evaluate credit worthiness of its consumers belonging to the farm sector.

“This use of impressive technology assists farmers with current credit to improve their eligibility, when new-to-credit farmers can now get superior access to credit,” it reported in a statement on Tuesday.

Even more, given that the land verification is done in a contactless manner with the aid of satellite info, credit assessments are becoming done inside a couple of days as in opposition to the field practice of up to fifteen days, the loan provider reported.

It has by now performed a pilot study making use of satellite info for the earlier couple of months in more than five hundred villages in Maharashtra, Madhya Pradesh and Gujarat and plans to scale up the initiative to more than sixty three,000 villages across the nation quickly.

“This, combined with demographic and economical aspects, gives solid information on the land asset of the farmers. We believe that that utilization of this technology will improve accessibility to credit as new-to-credit farmers will have uncomplicated access to formal credit, as properly as farmers with current credit lines will be in a position to securely increase their eligibility,” reported Anup Bagchi, Government Director, ICICI Financial institution.

The loan provider has partnered with agri–fintech businesses specialising in harnessing place technology and temperature information for industrial utilization and has labored with them to create studies with more than 40 parameters.

The bank works by using satellite info to evaluate rainfall and temperature info of earlier decades, soil dampness amounts in earlier decades, floor h2o availability, traits in crop sowing which includes crop identify, tentative sowing and harvesting months, crop health and fitness and yields, agriculture land area aspects which includes latitude, longitude and boundary of the land as properly as close by destinations of warehouses and mandis.