Farmers urge government to revoke order linking credit score to crop loans: Report
Members of the Keel Bhavani Murai Neer Pasana Vivasayigal Kootamaippu and the Keel Bhavani Ayacut Nila Urimaiyalargal Sangam submitted a petition to Minister for Housing, Prohibition, and Excise, S. Muthusamy, at his office on July 18, reported The Hindu.
The petition pointed out that farmers are already struggling due to poor pricing for their produce and erratic weather conditions. While low-interest and interest-free farm loans have helped reduce financial burden, a recent circular from the State Registrar of Cooperative Societies (RCS) has caused concern. The circular mandates verification of farmers' CIBIL scores before sanctioning agricultural crop loans.
Additionally, another directive requires farmers to obtain a no-objection certificate (NOC) from service area bank branches before availing loans from cooperative societies. 'Obtaining an NOC costs between ₹ 600 and ₹ 1,000, placing an unnecessary financial burden on farmers,' the petition stated.
The petition strongly opposed the linking of CIBIL scores and the NOC requirement, calling both measures 'burdensome' and demanding their immediate revocation. The Minister assured the farmers that the matter would be brought to the attention of Chief Minister M.K. Stalin.
With water release from the Bhavanisagar Dam into the Lower Bhavani Project canal expected on August 15, 2025, farmers have urged the government to act swiftly and roll back the new directives.
Association president S. Periyasamy, secretary K.V. Ponnaiyan, federation secretary R. Eswaramoorthy and other office-bearers were also present.
Disclaimer: Mint has a tie-up with fintechs for providing credit, you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit score. Mint does not promote or encourage taking credit as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.
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