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Chief Minister Devendra Fadnavis warned banks in Maharashtra to stop denying agricultural loans based on CIBIL scores. A Rs 44.76 lakh crore loan plan for 2025-26 was approved.
Devendra Fadnavis said that farmers were the backbone of the state, and agriculture was a crucial pillar of the economy.
In a sharp rebuke to banks operating across Maharashtra, Chief Minister Devendra Fadnavis on Monday issued a stern warning to banks to stop denying agricultural loans to farmers on the basis of CIBIL scores or face serious consequences. Speaking at the 167th State Level Bankers Committee (SLBC) meeting held at the Sahyadri Guest House in Mumbai, Fadnavis expressed deep concern over the continued insistence by banks on assessing CIBIL scores, despite repeated government warnings against the practice.
Farmers are being denied credit due to their CIBIL scores, and this is unacceptable, the chief minister said. “We have repeatedly instructed banks not to ask for CIBIL (score) yet they continue to do so. This must be resolved in today’s meeting itself. In the past, FIRs have been filed against such banks. This is a serious issue that banks must handle responsibly,” PTI quoted Fadnavis as saying.
CIBIL scores, a credit rating system maintained by the Credit Information Bureau, are typically used to assess a borrower’s ability to repay loans. However, Fadnavis argued that applying this metric rigidly to farmers has disastrous consequences. “If farmers do not receive agricultural loans, it adversely affects the economy and increases farmer suicides,” he said.
The chief minister underscored that even the Reserve Bank of India has clearly directed banks not to insist on CIBIL scores for farm loans, and warned that further violations could invite punitive action.
Rs 44.76 Lakh Crore Loan Plan for Maharashtra
In a significant financial move, the SLBC meeting approved a massive credit plan of Rs 44.76 lakh crore for Maharashtra for the fiscal year 2025–26. Nationalised banks were instructed to intensify efforts to disburse loans and expand the net of agricultural lending in the state.
Reiterating Maharashtra’s leadership in agriculture, Fadnavis said that farmers were the backbone of the state, and agriculture was a crucial pillar of the economy. “Neglecting agriculture is not acceptable. Hence, nationalised banks must focus on increasing farm loan distribution,” he reiteriated.
With the Indian Meteorological Department predicting favourable monsoon conditions this year, the chief minister stressed that banks should seize this opportunity to increase lending support. “With good rainfall predicted by the meteorological department, crops are expected to do well this year. In such a scenario, banks should extend greater support to farmers. Good rainfall boosts agricultural growth, which benefits both banks and farmers,” Fadnavis asserted.
He also emphasised the evolving nature of agriculture, highlighting the government’s new investment-centric approach to the sector. The state is implementing an agricultural investment policy with a target of Rs 5,000 crore in annual investments, Fadnavis announced, adding that agriculture must no longer be viewed as just a support sector but a full-fledged enterprise.
He urged financial institutions to align with this vision and adapt their lending strategies accordingly. Banks stand to gain by supporting this transformation. Their participation is not only welcome; it is essential, he said.
Fadnavis also underscored the critical role banks must play in accelerating the state’s economic growth, asserting that Maharashtra has already crossed the USD half-trillion economy milestone and is advancing rapidly toward becoming a USD one-trillion economy.
According to a PTI report, Fadnavis said, “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 beneficiaries, thereby strengthening both state and national economies.”
The chief minister further urged financial institutions to prioritise emerging sectors such as tourism and services, which he identified as key to boosting employment and regional development. Highlighting the state’s agricultural backbone, Fadnavis pointed to the growing network of Farmer Producer Organizations (FPOs) in Maharashtra, describing them as a vital force in transforming agricultural productivity and rural incomes.
He also drew attention to Gadchiroli, a traditionally underdeveloped district, emphasising that targeted investment and industrial networks are now being developed there. He called for banking support to ensure the success of such regional development plans.
With inputs from PTI
- Location :
Maharashtra, India, India
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