Farmers want delinking of crop loan from CIBIL score
The Hindu
At a meeting organised by Mysuru district administration to hear their grievances, farmers explained that CIBIL score is a hindrance to securing financial advance or assistance to take up farm-related projects
Farmers want agricultural loan to be de-linked from CIBIL score as it is a hindrance to securing financial advance or assistance to take up farm-related projects.
The score generated by Credit Information Bureau (India) Ltd. has details of an individual’s track record pertaining to credit history and repayment besides default, and is shared by financial institutions and lending agencies before sanctioning a loan.
The demand to delink CIBIL score from agricultural loans was raised at a meeting convened by the district administration of Mysuru to redress farmers’ grievances, in Mysuru on May 6.
Kurubur Shanthakumar, president, Karnataka State Sugarcane Cultivators’ Association, said farmers are trapped in a perennial cycle of crop loss due to floods or drought, which affects timely repayment. This gets reflected in the CIBIL score and blocks a farmer’s access to institutional credit. He suggested a policy change to delink CIBIL score from agricultural loans.
Deputy Commissioner Bagadi Gautham promised to write to the Lead Bank and others concerned, drawing their attention to the farmers’ demand and also submit a report to the Karnataka Government.
A section of farmers drew attention to the crop cycle in case of sugarcane, which stretches for 18 months from cultivation to harvesting while the loan cycle is for 12 months. This put farmers under duress to repay the loan and the interest even before they receive their dues from sugar mills. They want a change in the loan cycle from 12 months to 18 months.
Though Prime Minister Narendra Modi had stated that all farmers should receive the money for their produce within 14 days of procurement, the reality is different. Farmers claim that the delay in crediting the amount due to cultivators is adding to their interest burden.
Rupee hits all-time low at 85.20 against USD due to strong greenback, rising crude oil prices, and weak domestic markets.
Viatris faces U.S. FDA import alert for products from Indore plant, exceptions made for certain shortages.
xAI’s Grok may soon come to an iOS app as the company announced its Series C funding round of $6 billion.
Biocon and Zentiva receive EU approval for Liraglutide, a complex formulation for diabetes and weight management.
Equity markets fluctuate as Sensex and Nifty rise initially, then fall; global markets and oil prices also discussed.
Microsoft has been working on adding internal and third-party AI models to power Microsoft 365 Copilot.
China's dominance in critical minerals poses supply chain vulnerabilities for India, US, and EU nations, requiring strategic diversification efforts.
India's controversial popcorn tax system sparks outrage and criticism, with opposition questioning the complex GST rates.
ICAI President investigates auditing lapses at Byju's, disciplinary committee probing, details undisclosed, part of ongoing investigations.
Sensex and Nifty rebound sharply after steep decline, driven by value buying, bluechip stocks, and global market rally.
AS-IT-IS Nutrition aims for ₹300 crore GMV in 2025 with ATOM range, endorsed by Ravindra Jadeja.