Banks should not hold back in providing crop loans to farmers: CM Shinde

BL Pune Bureau Updated - June 26, 2024 at 02:47 PM.

During the meeting, Shinde highlighted that farmers should not be required to have a ‘CIBIL Score’ to obtain crop loans

Maharashtra Chief Minister Eknath Shinde | Photo Credit: PTI

Maharashtra Chief Minister Eknath Shinde has urged banks to not hold back in providing crop loans to small and marginal farmers. Speaking at the 163rd meeting of the State-level Bankers Committee in Mumbai on Tuesday, Shinde emphasized the importance of supporting farmers, especially in times of difficulty.

During the meeting, Shinde highlighted that farmers should not be required to have a ‘CIBIL Score’ to obtain crop loans. He stressed the need to strengthen district cooperative banks and primary agricultural credit societies across the State. The committee approved the annual credit plan of ₹4,12,86,000 crore for 2024-25. Additionally, it was directed that coordination officers from the Reserve Bank of India (RBI) and the National Bank for Agriculture and Rural Development (NABARD) be sent to district-level bank advisory committee meetings.

“Farming is the backbone of Maharashtra,” said CM Shinde. “Banks provide loans to big farmers and some agricultural industries, but they should not hold back in providing financial assistance to small and marginal farmers. We also encourage farmers to repay their loans,” he added.

For the previous financial year 2023-24, the State’s annual credit target was ₹33,90,601 crore. Through active participation, the banks disbursed ₹38,70,382 crore, achieving 118 per cent of the target. Under priority sector lending, the total achievement was ₹6,40,296 crore, which is 98 per cent of the annual target of ₹6,51,401 crore.

agriculture sector

In the agriculture sector, banks disbursed ₹1,54,120 crore against the annual target of ₹1,68,481 crore, achieving 91 per cent of the target. Under the MSME sector, banks disbursed ₹4,23,115 crore against the annual target of ₹3,61,916 crore, achieving 117 per cent of the target.

For the financial year 2024-25, the annual credit plan is proposed at ₹41,00,286 crore, reflecting a 21 per cent increase over the previous year. Of the total credit plan, ₹6,78,540 crore is proposed for the priority sector, compared to ₹6,51,401 crore in the previous financial year.

Published on June 25, 2024 17:00

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