COIMBATORE: After drawing flak for mandating CIBIL checks for crop loans, the Tamil Nadu Cooperative Department has now directed farmers to obtain a No Objection Certificate (NOC) from a nationalised bank to access loans through Primary Agricultural Cooperative Societies (PACS).
In a circular issued on July 17, the department instructed that farmers must now get a NOC from a manager of a nationalised bank in their locality or where they hold an account.
The original order, issued on May 26, mandated that all crop loans disbursed through Kisan Credit Cards must undergo CIBIL verification. This move drew sharp criticism from farmer associations.
Esan Murugasamy, founder of the Tamilaga Vivasayigal Pathukappu Sangam, alleged that the department was intentionally trying to push farmers away from PACS and into debt traps with commercial banks. “Whether it’s CIBIL score, CIBIL report, or a NOC, the burden on farmers remains the same,” he said.
A senior official in the department, however, said the process was designed to be simple. “PACS will provide a format letter. The farmer needs to get it signed and sealed by a nationalised bank manager,” the official said.
Farmer organisations continue to demand that all additional checks be removed to ensure easy access to cooperative loans.