Don’T Seek CIBIL Scores Of Farmers While Granting Loans: Maha CM Fadnavis Tells Banks

(MENAFN- IANS) Mumbai, May 19 (IANS) Maharashtra Chief Minister Devendra Fadnavis on Monday directed the banks to provide agricultural loans to farmers without insisting on providing CIBIL score (credit information). CIBIL score is a 3-digit numeric summary of one's credit history, rating and report, and ranges from 300 to 900. The closer one's score is to 900, the better his/her credit rating is.

“If agricultural loans are not provided to farmers, its consequences will be in the form of farmer suicides along with the economy. Therefore, despite repeated warnings from farmers not to ask for CIBIL, banks are asking from the farmers. Please provide an immediate solution to this. Earlier, the government has also filed FIRs against such banks. You will have to take this issue seriously. The Reserve Bank has also given clarity regarding agricultural loans. If any bank branch is asking for CIBIL, the action will be taken against that branch,” Fadnavis said at the 167th meeting of the State Level Bankers Committee held here.

The Chief Minister also asked the nationalised banks to make special efforts to increase the supply of agricultural loans and meet the target set for this year (2025-26).

On Monday, during the meeting, the state's credit plan for the financial year 2025-26 worth Rs 44,76,894 crore was approved.

Stating that Maharashtra is a leading state in the country, the Chief Minister said that farmers are the backbone of the state and agriculture is an important part of the state's economy. It is not right to ignore this sector. Therefore, nationalised banks should focus on increasing agricultural credit supply.

“The Meteorological Department has predicted good rains this year. Therefore, there is no drought situation, the crop will be good. In such a situation, banks should cooperate more with farmers. When there is good rain, the agricultural growth rate is good. Banks should take advantage of this and also help farmers. An investment policy is currently being implemented in the agricultural sector.

"The role of banks is important in it and they should participate in this investment. A target of investing at least Rs 5,000 crore per year has been set in the agricultural sector. Therefore, new opportunities will now be available for investment in this sector. Therefore, banks should provide maximum credit to farmers. It will only benefit banks,” said the chief minister.

“The agricultural sector will now not be just auxiliary and rehabilitative, but will be seen as a business. Banks should play their role in this. A policy should be formulated to honour farmers and those who do good work in these schemes. Chief Minister Fadnavis also gave instructions to take the names of those who do not do a good job and express their displeasure with them in the next meeting so that they will be inspired to do even better work,” he remarked.

CM Fadnavis said that Maharashtra has crossed the half-trillion economy milestone and is rapidly moving towards becoming a one-trillion economy. Banks play an important role in becoming a one-trillion economy.

“Maharashtra ranks first in foreign direct investment. Direct investment worth Rs 16 lakh crore has come to the state from Davos. Maharashtra is now the capital of startups. Banks should pay attention to this sector. It will generate employment on a large scale. The state is also number one in SSME and there are good opportunities for investment in it. Banks and the government need to work together to ensure that the benefits of central and state schemes for MSME reach the beneficiaries. This will help strengthen the economy of the state and the country,” he said, adding that the banks should also focus on tourism and service sectors as a priority.

CM Fadnavis further said that there are a large number of FPOs in Maharashtra. They can play an important role in the development of the agricultural sector. More focus should be placed on Gadchiroli. A network of industries is being formed there. If banks decide their priorities with the government, there will be holistic development. It is also the responsibility of banks to implement the schemes of the central and state governments as only through this will financial inclusion be achieved, he added.

Deputy Chief Minister Eknath Shinde said that banks should take the issue of agricultural credit provision seriously.

Also, the 100 per cent target of credit provision should be met. Banks should cooperate with entrepreneurs, especially women entrepreneurs. Emphasis should be placed on increasing credit provision in the Greater Mumbai region as well with huge opportunities for development in this sector.

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