CIBIL score ‘scare’ haunts Tamil Nadu farmers

TIRUCHY: Despite officials from the Cooperative Societies clarifying the mandatory CIBIL (Credit Information Bureau India Ltd) score for availing crop loans in Tamil Nadu, farmers are a worried lot.

They have appealed to the government to give assurance to the farmers that the CIBIL score will not have an impact on availing crop loans.

On May 26, the Registrar of Tamil Nadu Cooperative Societies announced that the CIBIL scores will be mandatory for availing crop loans, and those who have a good score alone will be eligible. This had caused a flutter among the farmers across the state who commenced a series of protests demanding to withdraw the new regulation.

However, the officials from Cooperative Societies clarified soon after the protests that the farmers need not worry as the Registrar of Cooperative Societies had stated that ‘CIBIL Statement’ that would pave way for verifying whether the applicant has availed any such loan from any other bank through Kisan Credit Card (KCC) rather than verifying credit eligibility.

The Cooperative Societies used to disburse loans through the KCC only. The officials further explained that the cooperative banks are required to verify whether the applicant has existing KCC loans from other banks to ensure that the limit has not been exceeded.

“During the recent farmers' grievances meeting, the Joint Registrar from Thanjavur explained that the CIBIL score would matter when a farmer avails loans for cattle, poultry and aquaculture, and the paddy crop is exempted. But for farmers rearing cattle and poultry alone, the officials should give assurance that the CIBIL verification will not extend to the loans for paddy cultivation,” said Swamimalai Sundara Vimalnathan, Secretary, Tamil Nadu Cauvery Farmers Protection Association.

Vimalnathan further asked the officials to clarify whether the issue pertained to the union government or the state government.

“The CIBIL statement is itself an indirect way of verifying the eligibility, and this is why we have been demanding to organise a meeting between the farmers and the officials, and we will get all our doubts clarified,” Vimalnathan said.

Echoing the same, P Ayyakannu, State president of Desiya Thennindiya Nadhigal Inaippu Sangam, said, the cooperative societies have started acting like a PSU Bank.

“The societies seek a ‘no dues’ certificate from the banks where the farmers have their accounts. We need to run from pillar to post to get this certificate, and availing loans has become a tough task nowadays,” Ayyakannu said.

Ayyakannu pointed out that several Direct Procurement Centres (DPCs) have been transferred to the National Cooperative Consumer Federation (NCCF) recently.

“Now, the NCCF has failed to disburse the amount for the procured paddy in several districts, including Chengalpattu, Ranipet, Tiruvannamalai and Tirupattur. As the amount is pending with the NCCF, the farmers can't ensure prompt repayment of the loan,” he said.

Meanwhile PS Masilamani, general secretary, Tamilaga Vivasayigal Sangam said, “When the CIBIL statement is certainly the other way of seeking a CIBIL statement. If the score was made mandatory in agricultural activities, the compensation and insurance claims would also be measured based on the CIBIL score, and this would lead the farmers to stay away from farming activity, he said and demanded that the state government organise a tripartite meeting to address the issue.

MONEY MATTERS

Primary Agriculture Cooperative Credit Societies (PACCS)

4,473 societies in Tamil Nadu

988 societies are available in Delta alone

Districts No of PACCS

Ariyalur 64

Karur 85

Nagapattinam 57

Perambalur 55

Pudukkottai 136

Thanjavur 243

Tiruvarur 137

Tiruchy 147

Mayiladuthurai 64

Loans disbursed through PACCS (in crores)

2020-21 Rs 28,276 (cr)

2021-22 17,806

2022-23 28,549

2023-24 40,633

2024-25 46,086

Loan eligibility:

Paddy: Rs 38,000 per acre

Sugarcane: Rs 50,000 per acre

Banana: Rs 58,000 per acre

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