Drop CIBIL score to grant farm loans: Expert

Accusing the banks of harassment by serving notices, he said they will move court if the banks don’t stop sending notices.

Published: 26th June 2022 06:03 AM  |   Last Updated: 26th June 2022 06:03 AM   |  A+A-

farmers, farming, agriculture

Image used for representational purposes only (File Photo | PTI)

By Express News Service

MYSURU: Farmers have urged the RBI and the government to change lending policy and not demand CIBIL score for availing agriculture loan. State Sugarcane Growers Association president Kurbur Shanthakumar said thousands of farmers across the state will lay siege to RBI in Bengaluru on June 28. He said many banks are considering CIBIL scores for sanctioning loans, and feared that defaulters struggling with crop losses, and fall in prices might be refused fresh loans. 

He pointed out that many banks are insisting that earlier loans be cleared for new borrowing. He said the government should release fresh guidelines so that all farmers can get loans again after reeling under economic losses and had to pay the interest hoping to borrow again.

When banks can give 90% of the site value for construction of houses, the same yardstick should be applied and 80% of land value should be given for loan, he said. The farmers are cheated by giving them Rs 30,000 for paddy cultivation and Rs 50,000 for sugarcane which falls short of the expenses.He said the government had given more than 30% fresh loan on the existing loans to bail them out from the losses accrued during the pandemic, but have not shown similar support of farmers who were worst-hit during the lockdown.

Accusing the banks of harassment by serving notices, he said they will move court if the banks don’t stop sending notices. He said the government while holding meeting with bankers has neither invited nor interacted with the farmers of their organisations. He said the  the police should  nab culprits cheating farmers by collecting OTPs on pretext of sanctioning loans.


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