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Farmers can now get instant loans as banks use satellite technology to assess land, income, and repayment capacity digitally.
Farmers in India often face delays when applying for loans to fund their agricultural activities. To address this issue, banks have now adopted a special technique using satellite technology. This will make it easier for farmers to access loans quickly and digitally.
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Traditionally, banks required farmers to provide paperwork, including details about their agricultural land, before approving loans. However, with new technology, banks can now use satellite images to assess a farmer's land and income potential. By analyzing satellite data, banks can estimate the farmer's crop yield, income, and ability to repay the loan. This innovation eliminates the need for physical surveys or lengthy approval processes, making loans available almost immediately.
The Uttar Pradesh government has partnered with the International Finance Corporation and Bangalore-based SatSure, a data analytics company. This partnership aims to provide loans to 8 crore farmers in the state through a fully digital process. Farmers will benefit from faster loan approvals, as banks can now rely on real-time data from satellite images instead of manual verification.
SatSure uses Artificial Intelligence (AI) to analyze satellite images and provide ratings for farms and villages. These ratings are shared with banks, helping them make informed decisions about loan approvals. The technology evaluates factors like:
This data helps banks understand the farmer's repayment capacity, reducing risks and speeding up loan approvals.
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Banks integrate SatSure's API into their systems, enabling them to assess a farm's risk within minutes. This automated process eliminates delays, allowing farmers to receive loans online almost instantly. SatSure has partnered with several major banks, including ICICI Bank and HDFC Bank, as well as the Reserve Bank of India's Innovation Hub, to roll out this technology nationwide.
Farmers can also benefit from the Kisan Credit Card (KCC) scheme, which provides loans of up to ₹3 lakh at affordable interest rates. Here’s how it works:
This digital initiative is a win-win for farmers and banks. Farmers no longer need to wait for surveys or struggle with paperwork. They can access loans faster, making it easier to invest in crops, equipment, or other agriculture needs. For banks, using satellite images reduces the risk of fraudulent claims and improves loan repayment rates.
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This technology is set to transform agricultural financing in India. With faster loan approvals and reduced paperwork, farmers can focus on enhancing their productivity and contributing to the nation's economy.