TransUnion CIBIL in association with data analytics provider SatSure has launched the CIBIL Credit and Farm Report (CCFR). This solution will help the lenders to improve the flow of credit to the agriculture sector by using data oriented and digital credit appraisal capabilities. It provides an ecosystem for agriculture financing and policy making besides helping regulators, policy institutions for development and financial inclusion in the agriculture sector.
“With our report providing contemporary credit insights with crop production and production risk parameters, lenders will have smarter agricultural credit risk management and a comprehensive approach to policy implementation” Rajesh KumarMD & CEO transunion Sybil.
Non-availability of reliable data through a single source is what lenders face while lending to the sector. Farmers in some parts of the country have been demanding that farm loans be delinked from their credit scores as it is a hindrance in securing formal sector funds to undertake projects in the agriculture sector. “Micro information in CCFR provides credit institutions with a one-stop view of borrowers and advances digitization of agricultural credit to aid in quicker disbursement, lower appraisal costs, and increase user base,” it said. Pratip BasuFounder and CEO of Satsure.
Data from TransUnion CIBIL shows that there are 7.4 crore live farm loan accounts in the country and lenders disbursed Rs 7.6 lakh crore to the sector in FY22.
Public sector banks account for more than 70 per cent of the agricultural loan portfolio, while private banks account for 14 per cent and non-bank finance companies have a comparatively much smaller share of another 4 per cent. “Unavailability of reliable data through a single source could be a major challenge that these credit institutions may face while expanding their agricultural loan portfolio,” TransUnion CIBIL said.