Cooperative banks insist on credit scores for loan approvals; farmers up in arms: Report
The protest call was given by Tamilaga Vivasayigal Sangam. Aside from this, its president N.A. Ramachandra Raja, members of Primary Agricultural Cooperative Credit Societies P. Ammaiyappan and A. Vijayamurugan took part in the protest held in front of the office of Deputy Registrar of Cooperatives.
Ramachandra Raja said the Reserve Bank of India in 2024 directed cooperative banks that any crop loan up to ₹ 2 lakh to the members should be given without any collateral.
'The maximum crop loan a member could get is only ₹ 3 lakh. However, when the loan amount surpasses ₹ 2 lakh, the farmers are supposed to give collateral for the entire crop loan,' Ramachandra Raja said.
Stating that when the members are giving collateral for higher amounts of loans and no collateral is required for loans up to ₹ 2 lakh, he asked, why do the Cooperative societies ask for credit score.
He said that loan applications of several members were rejected on lower CIBIL score.
'This is because the members could have got loans from any nationalised banks for their other domestic needs like education loan or other loans. Why should the cooperative banks be bothered about loans got from other banks?' he asked.
Besides, the members were also told to pay ₹ 120 for fetching CIBIL score.
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.
For all personal finance updates, visit here
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
2 hours ago
- Mint
Captain Fresh to file IPO papers by mid-August, launch $50–75 million pre-IPO round
Mumbai: Captain Fresh, a business-to-business (B2B) seafood marketplace, is expected to file its draft red herring prospectus (DRHP) for an initial public offering (IPO) within the next three weeks, according to two people familiar with the matter. 'The company is expected to file the IPO papers by mid August and will subsequently launch its pre-IPO round," one of the two people said, adding that the seed investors are expected to sell in part or full in a $50-75 million round. The planned filing is part of the company's broader push to access public markets in the current financial year through a $400 million IPO. It converted into a public entity earlier this month and has appointed Axis Capital and Bank of America to manage the issue. Seed investors in Captain Fresh include Ankur Capital, ADB Ventures, Z47, Incubate Fund India and Hoskoppal Ventures, according to data from Tracxn. Captain Fresh and the investors did not immediately respond to Mint's requests for comment. In December, Mint reported that the company was in talks to raise a $50-100 million round in which some of its late-stage investors, including Accel and Prosus, were expected to infuse additional capital. Captain Fresh last raised about $48 million in a round led by Evolvence India and British International Investment, valuing the company at slightly over $500 million. Other investors include Motilal Oswal Wealth, Tiger Global Management and Innoven Capital. Founded in 2019 by banker-turned-entrepreneur Utham Gowda, the Bengaluru-based company operates a farm-to-retail seafood supply chain, aiming to link small-scale fishermen and coastal farmers with fragmented retail demand across India. It offers both a digital commerce platform and a physical fulfilment network for retailers across formats. The company also has a presence in international markets, including the US, Spain, and the West Asia. It competes with startups such as Waycool, Apnaklub, and FarMart. Over the past two years, Captain Fresh has focused on narrowing losses while scaling operations. Its operating revenue rose to ₹1,395 crore in FY24 from ₹817 crore in FY23. Losses narrowed to ₹229 crore in FY24 from ₹294 crore the previous year, according to an Entrackr report. The company is yet to file its FY25 audited results.
Mint
2 hours ago
- Mint
Business & Finance Leaders Gather in Indore for Launch of 'How the Wealthy Borrow to Win'
Indore (Madhya Pradesh) [India], July 21: CA Vishnu Gupta and CA Prakhar Gupta launched their debut book 'How the Wealthy Borrow to Win' amidst an audience of 400+ business owners, CAs, and dignitaries. The evening opened with the ceremonial unveiling, followed by a keynote where the authors decoded the strategies wealthy entrepreneurs use to raise capital confidently — turning debt into a growth lever, not a distress move. The event drew guests not only from Indore, but also from Mumbai, Delhi, Chandigarh, Assam, Bangalore, Pondicherry, Chennai, Hyderabad, Pune, Jabalpur, Bhopal, Raipur, Surat, Gurugram, Jaipur, and even abroad. CA Vishnu Gupta, a veteran of 30+ years in funding, has guided some of Central India's most iconic business journeys with his strategic clarity, ethical foundations, and mastery of banking systems. From conducting high-impact audits to enabling multi-crore corporate funding, his voice carries rare credibility. He shared, 'Funding is not about documents. It's about clarity, timing, and trust.' CA Prakhar Gupta, at a mere age of 25, brings fresh energy & insight. An All India Ranker in CA, IIM Indore Executive alumni & former EY associate, he represents new lens of financial strategy. 'Borrowing isn't risky. Borrowing without structure is,' he shared. With sharp articulation & grounded empathy, he now leads VSP Consultant's mission to help 10,000 businesses unlock capital — with confidence. The book launch also featured keynote addresses from Chief Guests: Shri Suresh Prabhu, India's former Union Minister across Railways, Power, Commerce and Civil Aviation — a statesman respected globally for his clarity and vision. Shri Vinod Agrawal ji, Managing Director, Agrawal Coal Corporation, and a stalwart industrialist. How the Wealthy Borrow to Win is a practical guide for entrepreneurs who want to design debt with foresight. It simplifies lender logic, breaks common myths, and introduces structured thinking around capital. With case studies, checklists, and mental models, it equips ambitious founders to raise funds smartly, ethically, and effectively. The book has already been endorsed by business and financial luminaries including Dilip Suryavanshi, Dilip Buildcon, Manoharlalji Agrawal, Haldiram's, Padma Shri CA T.N. Manoharan, Brij Mohan Sharma, Ex-Executive Director, Canara Bank. The evening concluded with a heartfelt vote of thanks, where the authors acknowledged their mentors, clients, team, and families — and invited India's entrepreneurs to see finance not just as numbers, but as a mindset shift. Note to readers: This article is part of Mint's paid consumer connect Initiative. Mint assumes no editorial involvement or responsibility for errors, omissions, or content accuracy. Want to get your story featured as above? click here!
Mint
3 hours ago
- Mint
Diplomacy in the workplace is a delicate balance: Zoom's Sameer Raje
During the pandemic, Zoom calls became as familiar a term as vaccines and lockdowns. From office meetings and webinars to birthday celebrations, it was a medium to stay connected during those unprecedented times. 'The company displayed immense agility to step up with both financial and technology resources—not just for customers, but for communities and employees across the country," says Mumbai-based Sameer Raje, 49, general manager and head, India & SAARC, Zoom Communications, Inc. 'We demonstrated that Zoom was simple to use, flexible and scalable to adapt for a diverse user base." A lifelong passion for wheels handed Raje the opportunity to take on an assignment with a leading automobile design house early on in his career and in turn, transition from civil engineering to the world of IT. Raje talks to Mint about mentorship and why he enjoys cycling. Edited excerpts: Who do you consider your mentor? I've been fortunate to have a few mentors who have played a significant role in shaping my personal and professional journey. Their guidance has been instrumental, whether it was helping me excel in my passions or supporting me in making tough decisions as a leader. One major insight you worked on with your mentor's guidance? Learning how to win with diplomacy—it's a delicate balance of staying professional, maintaining harmony and still driving outcomes. Another valuable lesson has been about navigating workplace relationships with clarity and focus. The best approach is to stay committed to work, keep the focus firmly on what truly matters and avoid getting distracted by the noise around. What's the one positive work routine you have developed during the lockdown? I no longer spend 3-plus hours stuck in traffic—and a big part of that was thanks to Zoom. I now dedicate those hours to an activity of my choice. I've also blocked that time in my calendar to ensure it's used purposefully and not consumed by random calls or meetings. Why do you enjoy cycling? Cycling has taught me that the best views come after the steepest climbs. The sense of achievement at the end of a gruelling ride is indescribable. It brings immense psychological and physical rewards, reinforcing the idea that perseverance, resilience and inner strength can take you farther than you ever imagined. Monday Motivation is a series in which business leaders discuss their mentors and their work ethics.
