TransUnion CIBIL, SatSure launch Credit and Farm Report
CCFR will help drive speedier and efficient disbursement of credit to farmers, agricultural sector entrepreneurs, and businesses
TransUnion CIBIL, in collaboration with geo-spatial data analytics provider SatSure, has launched the CIBIL Credit and Farm Report (CCFR). This powerful solution will support lenders in improving the flow of credit to the agricultural sector using data oriented and digital credit assessment capabilities. The CCFR will lead to quicker and more astute decisions on agricultural lending and will help drive speedier and efficient disbursement of credit to farmers, agricultural sector entrepreneurs, and businesses.
The CCFR combines the power of credit information from TransUnion CIBIL and crop parameters based on geo-spatial data from SatSure to provide a holistic solution to lenders for making credit decisions on agricultural lending. It offers a digitally-powered and analytics-oriented ecosystem for agricultural financing and policy making, helping catalyse the rapid development of farming and agriculture across India. The CCFR can also help support regulators, policy institutions and stakeholders in India’s financial ecosystem with data analytics and insights for driving sustainable growth and financial inclusion in the agricultural sector.
Agricultural credit reach and regional disparity (credit not in proportion to their share in agriculture output) are also cited as some of the key challenges in the Reserve Bank of India’s report by the working group on agricultural credit. Other information challenges in agricultural lending include the lack of data on determinant credit parameters such as district-wise input cost for a crop, type of crops being grown, crop-wise sown area, the number/share of small and marginal farmers cultivating a crop, and data about allied activities being undertaken by small and marginal farmers.
Speaking on how the CCFR can help catalyze agricultural credit inclusion, Rajesh Kumar, MD and CEO of TransUnion CIBIL, explained,“Of India’s 14.6 crore1 farmers, only 5.7 crore have accessed credit from the formal lending ecosystem. One of the key roadblocks for credit penetration in the agricultural sector is the unavailability of a single, holistic source of information for assessing credit risk and production risk. Now that the CCFR is making contemporary credit insights along with crop production and production risk parameters available, lenders will have a comprehensive view for astute agricultural credit risk management and policy implementation.”
The CCFR provides parameterised credit details along with information about farm details and crop performance, ownership details, and other important regional metrics in a scientific manner derived from geo-spatial, remote sensing data along with government published APIs. The nuanced information in the CCFR offers credit institutions a one-stop view of borrowers and furthers the digitization of agri- loans to aid in quick disbursals, lowering appraisal costs, and increasing the user base,” said, Prateep Basu, founder and CEO of SatSure.
CCFR will help drive speedier and efficient