How is the satellite data used for Farm credit assessment by banks?

Indian multinational banking and financial services provider ICICI Bank has announced that it is going to use the satellite data-imagery from earth observation satellites to assess the creditworthiness of the farmers seeking loans. ICICI is the first bank in India to take such a step.

The assessment

  • Using the data it will measure an array of parameters associated with the land, irrigation, and crop patterns. That means the physical visit is no longer needed.
  • It will then combine the data with the demographic and financial parameters to make speed lending decisions.


  • It will provide important information about the land asset of the farmers.
  • The use of advanced technology will enhance the eligibility of the farmers.
  • The farmers will have better access to the credit.
  • The contactless land verification process will reduce the time taken for the assessment which previously used to take about 15 days.

The satellite data is already being used by the bank over 500 villages in Maharashtra, Madhya Pradesh, and Gujarat. It has reportedly benefited the farmers.  The bank is now looking forward to a nationwide extension covering 63,000 villages across the country within 2-3 months.

Next step

The bank has tied up with several Agri–fintech companies that analyze the space technology and weather information to use it commercially. Reports are being prepared jointly on the basis of the parameters for assessing the credit-worthiness of a farmer, taking into account the information related to land, irrigation, and cropping patterns. It will be used in the extension process of the Kisan Credit Card loans.




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