YSRCP MP Vijayasai Reddy urges centre to withdraw CIBIL score requirement for Agriculture loans

YSR Congress party Rajya Sabha member Vijayasai Reddy has appealed to the central government to immediately withdraw the stipulation for granting agricultural loans on the basis of the farmers' Cibil score. Speaking at the Rajya Sabha Zero Hour on Thursday, he said, "It is important for farmers to have timely access to agriculture. 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 for banks' lending on agriculture are highly objectionable."

He said that the Reserve Bank of India (RBI) has decided to grant loans on the basis of the Farmer's Cibil Score. Vijayasai Reddy brought to the notice of the government that banks are refusing to grant agricultural loans to the farmers who have applied for loans on the basis of transactions recorded in Sibil as a defaulter or timely instalments. He said that while the RBI guidelines are not good for the farmers, the stringent regulations are making them more vulnerable.

The agriculture sector in the country is totally rainforest. He said that 75 to 80 per cent of farmers are affected by the sudden consequences of flooding, hail and drought. He added that farmers were left in a state of disorientation and were unable to pay their agricultural debts due to natural disasters. Vijayasai Reddy questioned how the provision of agricultural loans would be reasonable based on the farmers' sibil score. He, therefore, urged the government to take immediate action to remove the Cibil Score mandate for the grant of agricultural loans and to enable banks to issue loans to farmers on a credible basis.