COIMBATORE: Even as the limit for crops loans, signed by a personal guarantor, was increased from Rs 1.60 lakh to Rs 2 lakh, farmers have alleged that many cooperative societies are still providing less than Rs 2 lakh as loan. Many have also alleged that only those farmers who availed a loan last year are being given loans again this year, and those approaching the societies for new loans are being turned away.
Esan Murugasamy, founder of Tamilaga Vivasayigal Pathukappu Aangam, said, "Through the Primary Agricultural Cooperative Banks (PACS), eligible farmers can avail collateral-free crop loan, and the loan limit was revised from Rs 1.60 to Rs 2 lakh, effective January 1, 2025. Farmers can avail interest-free loans up to Rs 2 lakh and they must repay the loan within 12 months.”
"However, a few cooperative societies in Tiruppur and Coimbatore societies are limiting the loan to below Rs 1.60 lakh. Farmers availing new loans are also being denied, forcing them to depend on money lenders,” he added.
He urged the cooperative department to rectify the issue by issuing loans up to Rs 2 lakh to all eligible farmers, irrespective of their loan history.
R Periyasamy, a farmer from Theethipalayam, said, "Societies in Perur taluk limits are offering loan up to Rs 2 lakh without any restrictions. However, the process of crop loan application should be completed within a week, but societies are taking 10 or more days to process them. They are not processing single applications. Instead, they bunch the applications and process them at once.”
An official from the cooperative department in Coimbatore said, "Even though the loan limit was increased to Rs 2 lakh, societies take into consideration the crops that farmers are going to cultivate. Some crop cultivation may cost less than Rs 1.50 lakh. Yet, all eligible farmers are offered loans."
