Credit loans

rbi: Farmers urge Rbi to lower credit rating for agricultural loans | Mysore News

Mysuru: Unhappy with the recent directive issued by the Reserve Bank of India (RBI) to banks to assess the viability of lending to farmers by checking their score from Credit Information Bureau India Ltd (CIBIL), the members of the Producers Association Karnataka state sugar cane company on Friday called on the Mysuru district administration to take action for the central bank to reverse its decision.
Attending a meeting of farmers convened by the district administration, association chairman Kurubur Shanthakumar said, “If RBI makes credit score verification compulsory, it will become almost impossible for farmers to get loans. There have been several instances of loan renewal applications being rejected by banks due to poor CIBIL scores.
The farmers pointed to the various problems plaguing the agrarian community, adding that increased difficulty in obtaining loans would plunge them deeper into distress.
Mysuru Deputy Commissioner Bagadi Gautham after listening to their grievances said he would notify the state government of their request. He also instructed the general manager of the zilla panchayat and all panchayat development officers to take action to eliminate the encroachment along the lakes. Gautham also assured angsty farmers to bully the state government over the purchase cap on their crops.
Other key issues discussed at the meeting include erratic power supply, banks not offering loans to farmers at 4% interest rate and interest-free gold loans .
Mysuru ZP CEO R Poornima, Karnataka Mysuru District Unit Chairman Rajya Raitha Sangha Hosur Kumar, Sangha General Secretary Hosakote Basavaraju were among others who attended the meeting.