Provide Agricultural Loans to Farmers Without Insisting on CIBIL Score: CM Devendra Fadnavis Chief Minister warns banks over farm loan disbursal delays

Vipul Vaidya

Mumbai: Chief Minister Devendra Fadnavis has firmly directed banks not to insist on CIBIL scores while disbursing agricultural loans to farmers. He warned that failure to provide timely agricultural credit adversely impacts both the economy and the farmers. Action has already been taken against banks that did not comply with earlier instructions, including the filing of FIRs. The Reserve Bank of India has also clarified norms regarding farm credit. If any bank branch still demands a CIBIL score from farmers, strict action will be taken against that branch, he asserted.

CM Fadnavis instructed nationalized banks to make special efforts to meet the farm credit targets for this year. These directions were given during the 167th meeting of the State Level Bankers’ Committee (SLBC), held at the Sahyadri Guest House, where the loan plan for the financial year 2025–26 amounting to ₹44,76,804 crore was approved.

Emphasis on Increased Farm Credit by Nationalized Banks

Maharashtra is a leading state in the country, and the farmer is the backbone of the state’s economy, CM Fadnavis stated. The agriculture sector plays a vital role in the state’s financial stability and must not be neglected. He urged nationalized banks to intensify efforts to increase the flow of agricultural credit.

The Meteorological Department has forecast a good monsoon this year. Given this, banks should extend greater support to farmers. A good monsoon results in higher agricultural growth, which benefits both banks and farmers alike.

A new investment policy is being implemented in the agriculture sector, with an annual investment target of at least ₹5,000 crore. Banks must play a critical role in this by participating in investment opportunities, which will now be more readily available. Agricultural lending should be viewed not merely as aid or rehabilitation but as a viable business opportunity.

CM Fadnavis emphasized that banks must provide maximum credit to farmers, which would ultimately benefit the banks as well. He added that institutions and individuals performing well under these schemes should be honored, creating an atmosphere that motivates others. On the other hand, banks and individuals failing to meet expectations will face strict action.

Banks Should Focus on Tourism, Services, and Startups Too

CM Fadnavis also noted that Maharashtra has already crossed the milestone of a half-trillion-dollar economy and is moving rapidly towards becoming a $1 trillion economy. Banks have a vital role to play in achieving this goal. Maharashtra ranks first in terms of Foreign Direct Investment (FDI), with ₹16 lakh crore worth of FDI received during the Davos forum.

He highlighted that Maharashtra is now the startup capital of India and urged banks to focus on this sector due to its high potential for job creation. The state also leads in MSME development, where investment opportunities are abundant.

Banks and the government must work together to ensure that the benefits of central and state schemes under the MSME sector reach the intended beneficiaries. This cooperation will help strengthen not only Maharashtra’s but also the country’s economy. He also emphasized prioritizing sectors like tourism and services for credit disbursement.

Align Bank Priorities with Government for Inclusive Development

CM Fadnavis pointed out that a large number of Farmer Producer Organizations (FPOs) exist in Maharashtra, and they can play a key role in agricultural development. He urged banks to focus more on districts like Gadchiroli, where an industrial ecosystem is being developed, and to actively contribute to this transformation.

He said that banks must align their priorities with those of the government to ensure holistic development. Implementing both central and state government schemes is also the responsibility of banks, which will lead to greater financial inclusion, he added.

Achieve 100% Agricultural Credit Target : Deputy CM Eknath Shinde

Deputy Chief Minister Eknath Shinde emphasized that banks should treat the issue of agricultural credit with seriousness and ensure 100% target achievement. He also directed banks to support entrepreneurs, especially women entrepreneurs, and to focus on enhancing loan disbursal in the Mumbai Metropolitan Region (MMR), which offers immense growth opportunities.

The meeting was attended by Chief Secretary Sujata Saunik, Additional Chief Secretary to the Chief Minister Vikas Kharge, Secretary Dr. Shrikar Pardeshi, Chairman of the SLBC Aadesh Pandey, secretaries of various departments, senior officials, SLBC members, and officers from multiple banks.