CM Fadnavis berates pvt banks for demanding CIBIL score for crop loans

The issue was raised in the 167th state-level bankers committee meeting chaired by Fadnavis, where a loan disbursement plan worth ₹44.76 lakh crore for the financial year 2025-26 was approved. During the discussion, it came to light that private banks were demanding CIBIL scores

MUMBAI: Chief minister Devendra Fadnavis on Monday reprimanded senior officials of private banks for demanding a credit rating (CIBIL) score from farmers who applied for agricultural loans. He warned the officials of action if their banks continued demanding a CIBIL score, and asked them to take the issue seriously and come up with a prompt solution.

Mumbai, India - June 29, 2023: Dy CM Devendra Fadnavis interacts during his interview at Sagar Bunglow, in Mumbai, India, on Thursday, June 29, 2023. (Photo by Anshuman Poyrekar/ Hindustan Times) (Hindustan Times)

The issue was raised in the 167th state-level bankers committee meeting chaired by Fadnavis, where a loan disbursement plan worth ₹44.76 lakh crore for the financial year 2025-26 was approved. During the discussion, it came to light that private banks were demanding CIBIL scores.

“A CIBIL score denotes the creditworthiness of a person, and it is not difficult to understand that the credit score of farmers will remain low, considering their financial weakness and track record in repaying loans,” said a senior government official who attended the meeting.

Fadnavis, while addressing the issue, said that private banks were continuing to demand a CIBIL score from farmers despite being asked not to. Last year, the state government had issued a warning that FIRs would be lodged against them if they demanded these scores. “You need to take this matter seriously,” Fadnavis warned at the Monday meeting. “Even the Reserve Bank of India has clarified that CIBIL scores are not necessary for crop loans. If any branch of any bank continues to insist on a CIBIL score, action will be taken against that branch. I want a decision to be taken on this in this very meeting.”

The chief minister also asked nationalised banks to make special efforts to achieve the agricultural loan disbursement targets set for this year. “The farmer is the backbone of the state, and agriculture is a vital part of our economy. It should not be neglected,” he stated, adding, “The weather department has forecast good rainfall this year, indicating no drought situation and a good crop yield. Against this backdrop, banks must offer greater support to farmers.”

Fadnavis emphasised that the agricultural sector would no longer be seen merely as an auxiliary or rehabilitative domain but as a business, and banks were expected to embrace this role. “A policy should also be established to honour those who implement these schemes and do good work for farmers,” he said. “This will motivate others. Those not performing well should also be named and their shortcomings highlighted in the next meeting.”