Cibil Score Should be removed for Farmer Loans: Vijaya Sai Reddy

Thu Nov 28 2019 15:32:48 GMT+0530 (IST)

YSR Congress MP, Vijayasai Reddy has shown his concern towards the farmers and asked the Central government to withdraw the recent guidelines of the Reserve Bank of India(RBI) which states that the verification of the CIBIL score to extend loans to the farmers is mandatory.

He added that this will lead to the rejection of the loans largely. He has appealed this during the Rajya Sabha zero hour.

"It is important for farmers to get timely loans for agricultural activities. Public sector banks have always played an active role in granting loans to farmers. However, some of the most recent guidelines issued by the Reserve Bank of India regarding banks lending of agriculture are highly objectionable," said Reddy.

He also said that the RBI has decided to grant loans on the grounds of the Cibil Scores of farmers. Vijayasai Reddy has also explained that the banks are refusing to grant agricultural loans to the farmers who have applied for loans by showing silly reasons that their transactions recorded in Cibil shows them as a defaulter or they don’t pay the installments on a timely basis.

He, therefore, urged the government to take immediate steps to remove the Cibil Score mandate for agricultural loans and to enable banks to issue loans to farmers on a credible basis.