ICICI Bank to use satellite data to assess the creditworthiness of farmers

ICICI Bank uses satellite data to assess the creditworthiness of farmers. ICICI Bank has become the 1st bank in India to use such a technique to measure an array of parameters related to the land, irrigation, and crop patterns and use it in combination with demographic and financial parameters to make quick lending decisions for farmers.

Advantages of using Satellite Data:
The satellite data with demographic and financial details provides strong information on the land asset of the farmers.
Usage of this technology will help farmers with existing credit to expand their eligibility and help new-to-credit farmers to get better access to formal credit.
It is also expected to cut the time of providing credit, as land verification with the help of satellite data is done in a non-contact manner, and credit assessments are made within a few days as against the industrial practice of up to 15 days.

©2020 by 10-MinuteCurrentAffairs. Proudly created for future officers.