Do not ask for CIBIL scores when paying for farm loans, Maharashtra CM Fadnavis warns banks
CIBIL scores are the credit value mechanism of the Credit Information Bureau, which is used by financial institutions to evaluate loan applications, with a focus on repayment capacity.
“If farmers don’t get agricultural loans, it will have a negative impact on the economy and increase farmers’ suicide. We have repeatedly instructed banks not to ask for cibil (scores), but they continue to do so. This must be resolved at today’s meeting. In the past, it was a serious bank.
“The RBI has also issued clarity on agricultural loans. If any bank branch insists on Cibil, then action will be taken.”
CM further directed state-owned banks to make special efforts to meet their loan spending targets this year and to expand agricultural credit coverage. During the meeting, a credit plan of Rs 4.76 crore for Maharashtra for fiscal year 2025-26 was approved.
CM said highlighting Maharashtra’s leading position in the country, saying the state and the farmer backbone of agriculture are an important part of the economy. “Ignoring agriculture is unacceptable. Therefore, nationalized banks must focus on increasing the allocation of farm loans. With the rainfall forecast by the meteorological sector, it is expected that the crops will do well this year. In this case, banks should expand support for farmers. Good rainfall increases. Rainfall increases, growing agricultural growth, strengthening banks and farmers, which makes Fadnavis sissinsers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers sissers
Fadnavis said banks will benefit farmers by expanding more credit, as agriculture is now seen not only as a support sector, but also as a commercial enterprise.
Fadnavis also directed that banks and officials who performed well in these plans must be respected, while those who did not meet expectations must be named in subsequent meetings to encourage better performance.
CM added that Maharashtra has exceeded $500 million in economic trademarks and is rapidly growing to $1 trillion. Banks are expected to play a key role.
“The state ranks first in foreign direct investment, with Rs 16 lakh crore secured from Davos. Maharashtra is now startup capital and banks should support this sector, which has significant employment potential. Maharashtra ranks first in the MSME sector, which promises investment opportunities. Banks and the government must work together to ensure benefits of Central and state MSME schemes reach intended benefits, thereby strengthening both state and national economy,” he said.
Fadnavis also urged banks to give priority to tourism and services. Fadnavis highlighted the important existence of the Maharashtra FPO (Farmer Producers Organization) and pointed out that they can play a crucial role in agricultural development. He urged a focus on Gadchiroli, which is developing an industrial network.
“Banks should be aligned with government priorities to ensure overall development. Implementing central and state government programs is also the responsibility of banks and is crucial to achieving financial inclusion,” Fadnavis said.
