Satellite is now being used to give loans to farmers. ICICI Bank has started this new technology. The bank is giving loans to farmers after assessing the pictures of the fields taken through satellite.
Satellite is now being used to give loans to farmers. ICICI Bank has started this new technology. The bank is giving loans to farmers after assessing the pictures of the fields taken through satellite. ICICI Bank says that this technology is helping to get an accurate idea of the economic condition of the farmers, as well as taking less time to approve the loan. This step is also helping the bank to reduce its expenses.
ICICI Bank has been using satellite data and distributing loans from over 500 villages in Maharashtra (Maharashtra), Madhya Pradesh (Madhya Pradesh) and Gujarat (Gujarat) for the last few months. The bank plans to spread this technology to 63000 villages. The bank says that ‘this new technology will help increase the loan limit of farmers. Also, access to new farmers who are joining the bank will be easy. ICICI Bank claims that it will be the first bank in India to use this technology.
How does the ‘satellite’ scheme work?
Actually, the biggest advantage of this scheme is that no bank official has to go to the farm of the farmer taking the loan. Till now, before giving loans to the farmers, the officials of the bank used to visit the fields to take stock of the quality of the crop, the system of irrigation and the condition of the land. But now the bank takes satellite pictures of the fields and sends it to the third party, who after thorough investigation, informs the bank. These satellite images help the bank to estimate the income of farmers based on the size of the farm and the quality of the crop.
New technology will provide loan soon
ICICI Bank Executive Director Anoop Bagchi said that ‘using the satellite image will reduce the bank’s expenses. Also, the time taken for loan approval will also decrease. He said that loan is being sanctioned in a few days with the use of this technology. Normally, it takes 15 days for the loan to be approved.
ICICI Bank’s rural credit portfolio is 571 billion rupees. In this technology, the ability of the farmer to take a loan is explored. It has more than 40 parameters. ICICI Bank holds one-third of this loan in a rural loan of around Rs 571 billion. Bagchi said that the use of this technology will improve the asset quality of the bank in the long term. Agriculture accounts for about 15 per cent of India’s $ 2.8 trillion economy.