The Problem

  • Once a loan is made to a farmer, it is difficult to monitor changes in the likelihood of repayment.
  • It can also be hard to verify that the loan has been spent as agreed in the contract.
  • Gathering ongoing farm-level data is expensive and time-consuming.
  • Flexible repayment based on agricultural performance could reduce NPLs, but difficult to implement without good data.

Our Approach

Remote sensing satellites continually monitor farmlands over the term of the loan Changes in vegetation/crop cover are tracked against historical seasonal performance

As soon as on-farm performance varies from predicted performance beyond a certain threshold, lending institution receives automatic notification.

Benefits

  • Agricultural performance and likelihood of timely loan repayment can be easily monitored.
  • In case of any unpredicted occurance (e.g. drought, flooding, disease), lending institution receives early warning for late repayment.
  • Repayment dates can be adjusted before loans become non-performing.
  • Facilitates more flexible relationship between customer and financial institution.
  • Low cost, light touch and automated solution.

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