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States » WestPosted at: May 20 2025 12:38AM


Maha: CM cautions banks against CIBIL-based rejections for farm loans

Mumbai, May 19 (UNI) Maharashtra Chief Minister Devendra Fadnavis on Monday issued a stern directive to banks, urging them not to insist on CIBIL scores while disbursing agricultural loans, and warned of action against branches which fail to comply.
Speaking at the 167th State Level Bankers’ Committee (SLBC) meeting at the Sahyadri Guest House here, he stressed that continued demand for credit scores from farmers, despite repeated government instructions, was detrimental to both the agricultural sector and the state's economy.
“Agricultural loans are the lifeline for our farmers. Denial of credit due to CIBIL scores leads not only to economic distress but also contributes to the rise in farmer suicides. We have instructed banks repeatedly not to ask for these scores, yet many continue to do so. This must be resolved today. Banks found violating this guideline have faced FIRs in the past, and we will not hesitate to take similar action again,” Fadnavis warned.
Reiterating the Reserve Bank of India's stance on the matter, the Chief Minister emphasised that no bank branch should make CIBIL scores a prerequisite for granting farm loans, and any such instance would invite strict punitive measures.
Fadnavis urged nationalised banks to exert greater efforts in achieving agricultural loan disbursement targets and to expand the reach of credit facilities in rural areas. He announced the approval of a comprehensive credit plan worth Rs 44.76 lakh crore for Maharashtra for the 2025-26 fiscal year.
Highlighting the significance of agriculture to the state's economy, Fadnavis said, “Our farmers are the backbone of Maharashtra. With favourable monsoon forecasts, the upcoming season holds great promise. Banks must seize this opportunity to enhance support for agriculture. Increased agricultural growth is beneficial to both the banking sector and the farming community.”
The Chief Minister also pointed to the state’s agricultural investment policy, under which an annual target of Rs 5,000 crore has been set. He encouraged banks to treat agriculture as a business venture rather than a welfare obligation, asserting that increased lending would yield mutual benefit.
Underscoring accountability, Fadnavis directed that banks and officers performing well under various schemes be recognised, while underperformers should be identified in future meetings to foster transparency and encourage improvement.
He further highlighted Maharashtra’s economic strides, noting that the state has crossed the USD 500 billion mark and is on course to becoming a USD one trillion economy. “Banks play a pivotal role in this journey. With Maharashtra leading in foreign direct investment—securing Rs 16 lakh crore from Davos—and emerging as the startup capital, banks must align with the government’s vision,” he said.
He also called on banks to prioritise lending in the tourism and services sectors and to focus on supporting MSMEs, which he described as key drivers of investment and employment.
Fadnavis stressed the need for collaborative efforts between banks and government to ensure the effective delivery of central and state MSME schemes.
Highlighting the growing presence of Farmer Producer Organisations (FPOs) in the state, Fadnavis said they represent a crucial pillar of agricultural development and must be supported. He urged special focus on backward regions like Gadchiroli, where industrial infrastructure is being developed.
“Banks must align their operational priorities with government schemes to promote inclusive growth and financial inclusion across Maharashtra,” he concluded.
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