ICICI bank turns to satellite imagery for assessing creditworthiness of farmers

This marks as a revolutionary move by the bank. Indian banks usually deploy officials to travel hundreds of miles across the hinterland to assess irrigation systems, crop quality and land location for forecasting farm revenue to make loans.

ICICI bank turns to satellite imagery for assessing creditworthiness of farmers
ICICI bank turns to satellite imagery for assessing creditworthiness of farmers

ICICI bank turns to satellite imagery for assessing creditworthiness of farmers

ICICI Bank has begun using satellite images of farmlands to help it assess farmers’ creditworthiness. This marks as a revolutionary move by the bank. Indian banks usually deploy officials to travel hundreds of miles across the hinterland to assess irrigation systems, crop quality and land location for forecasting farm revenue to make loans. Anup Bagchi, Executive Director of ICICI Bank said that data from satellite images would help the bank to cut costs and reduce the time taken to give out loans.

It can now be completed in a few days, as against the industry practice of 15 days or more. The biggest upside for the bank officials is that there is very little wastage of time on accessing the data. The technology will be applied to a type of farm loan that makes up a third of ICICI’s rural loan portfolio of about 571.8 billion rupees ($7.7 billion). The bank plans to take the technology to 63,000 villages.