Banks should not insist on CIBIL score for loan disbursement to farmers, warns Fadnavis
Maharashtra Chief Minister Devendra Fadnavis on Monday issued a stern warning to banks, directing them not to insist on CIBIL scores while disbursing agricultural loans to farmers. He said that denying farm loans to farmers can have serious repercussions on the economy and may contribute to instances of farmer suicides.Speaking at the 167th State Level Bankers’ Committee (SLBC) meeting at the Sahyadri Guest House, Fadnavis pointed out that despite repeated instructions, banks demand CIBIL scores for farm loans. “This issue must be resolved immediately. FIRs have already been filed against some banks in the past. If any branch (of a bank) continues to insist on CIBIL, strict action will be taken,” Fadnavis said.
The CIBIL score is a credit worthiness mechanism of the Credit Information Bure...