MYSURU: Farmers have urged the RBI and the government to change the loan policy and not require CIBIL score to qualify for agricultural loan. State Sugar Cane Growers Association Chairman Kurbur Shanthakumar said thousands of farmers across the state will besiege RBI in Bengaluru on June 28. could be refused new loans.
He pointed out that many banks insist that past lending be offset against new borrowing. He said the government should issue new guidelines so that all farmers can get loans again after suffering economic losses and having to pay interest in hopes of borrowing again.
Where banks can give 90% of the value of the site for the construction of houses, the same criterion must be applied and 80% of the value of the land must be loaned, he said. Farmers are tricked into giving them 30,000 rupees for rice cultivation and 50,000 rupees for sugar cane which is below the expenses. He said the government had given more than 30% new loans on existing loans to bail them out from losses accumulated during the pandemic, but failed to show similar support for farmers who were hit the hardest during the lockdown. .
Accusing banks of harassment by serving notices, he said they would move the court if banks did not stop sending notices. He said the government, in its meetings with bankers, did not invite or interact with farmers from their organizations. He said the police should arrest culprits who deceive farmers by collecting OTPs under the guise of sanctioning loans.