CM Fadnavis Warns Banks not to reject Loans to Farmers based on CIBIL Scores

In a strong message to banks operating in Maharashtra, Chief Minister Devendra Fadnavis has warned financial institutions not to reject agricultural loans to farmers based on their CIBIL credit scores. He said that such practices are unacceptable and could have serious consequences. He made this statement during the 167th State Level Bankers Committee (SLBC) meeting held at Sahyadri Guest House in Mumbai.

CIBIL scores are typically used by banks to assess a borrower’s ability to repay loans. However, Chief Minister Fadnavis stressed that applying this method to farmers is unfair and damaging.

“Farmers are being denied credit due to their CIBIL scores, and this is not acceptable,” Fadnavis said. “We’ve repeatedly told banks not to insist on CIBIL scores for farm loans, yet they continue to do so. If this continues, the state won’t hesitate to take strict action. FIRs have been filed against banks in the past for this very reason.”

He also reminded banks that the Reserve Bank of India (RBI) has already directed them not to rely on CIBIL scores when approving farm loans. According to the chief minister, rigid use of credit scores prevents farmers from accessing much-needed financial help, especially during sowing seasons, and could lead to higher rates of farmer suicides.

The SLBC meeting also approved a massive loan disbursement plan of ₹44.76 lakh crore for Maharashtra for the financial year 2025–26. Fadnavis urged nationalised banks to step up their efforts to expand agricultural lending and ensure that the benefits reach the farmers in every corner of the state.

“Agriculture is the backbone of Maharashtra’s economy. Ignoring this sector is not an option,” Fadnavis said. “Banks must now focus on supporting farmers more than ever.”

With a favourable monsoon predicted by the India Meteorological Department, the chief minister said the time is right for banks to ramp up farm loan disbursals, as a good crop season would benefit both banks and the farming community.

Fadnavis spoke about the government’s new approach to agriculture — treating it as an investment-driven enterprise rather than just a support sector. The state has launched a new agriculture investment policy aiming to attract ₹5,000 crore in yearly investments.

“Banks should align with this vision. By supporting modern agriculture, they are not just helping farmers, but also creating new business opportunities for themselves,” he added.

He encouraged banks to support the expansion of Farmer Producer Organisations (FPOs), which he described as key to boosting productivity and rural incomes.

Maharashtra’s Economic Growth and the Role of Banks

Chief Minister Fadnavis also highlighted Maharashtra’s economic progress, saying the state has crossed the USD half-trillion economy mark and is on track to become a USD 1 trillion economy. He called on banks to support new and emerging sectors such as startups, MSMEs, tourism, and services, all of which offer major employment and investment opportunities.

He pointed out that Maharashtra leads in:

• Foreign direct investment (FDI), having secured ₹16 lakh crore from Davos
• Startup ecosystem, making it the startup capital of India
• MSME sector, which is vital for job creation and innovation

“Banks and the government must work together to ensure that the benefits of Central and state schemes reach the right people,” he said.

Fadnavis drew attention to Gadchiroli, a previously neglected district that is now being targeted for development through investment and industrial networks. He called on banks to play an active role in regional upliftment, especially in areas that have traditionally lacked financial support.

In his closing remarks, the chief minister urged all financial institutions to take their social responsibilities seriously.

“It’s not just about numbers. When banks support farmers, MSMEs, and startups, they are helping build a stronger and more inclusive Maharashtra,” Fadnavis said.

The message from the SLBC meeting was clear: Maharashtra is open for business — but that business must include the backbone of the state — its farmers.