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Mint
18-07-2025
- Business
- Mint
Cooperative banks insist on credit scores for loan approvals; farmers up in arms: Report
Farmers carried out a demonstration against the new rule of cooperative banks where they insist on members getting credit scores for availing farm loans and cattle maintenance loans, at Srivilliputtur, reported The Hindu. 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
The Hindu
17-07-2025
- Business
- The Hindu
Famers protest against new rule of cooperative societies insisting on CIBIL scores to give farm loans
Farmers staged a demonstration against the new rule of cooperative banks insisting on members getting CIBIL scores for availing themselves of farm loans and cattle maintenance loans, at Srivilliputtur on Thursday. The protest call was given by Tamilaga Vivasayigal Sangam. Besides, 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. Mr. Ramachandra Raja said that cooperative banks have been directed by the Reserve Bank of India in 2024 that any crop loan upto ₹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 exceeded ₹2 lakh, the farmers have to give collateral for the entire crop loan,' Mr. Ramachandra Raja said. Stating that when the members are giving collateral for higher amount of loans and no collateral is required for loans upto ₹2 lakh, he wondered why was the Cooperative societies insisting on CIBIL score. He said that loan applications of several members had been rejected due to 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 asked to pay ₹120 towards fetching CIBIL score.
