Banks must ensure credit reaches farmers, not link CIBIL score to loan sanction: CM Fadnavis

Maharashtra Chief Minister Devendra Fadnavis has directed banks to handle agricultural loan disbursal with greater seriousness, amid a decline in the number of loan accounts in the state.

Maharashtra Chief Minister Devendra Fadnavis on Thursday directed banks, especially the nationalised lenders, to handle agricultural loan disbursal with greater seriousness and ensure that credit reaches farmers, MSMEs and the rural economy.

Speaking at the 171st meeting of the State Level Bankers' Committee (SLBC) at the Sahyadri Guest House here, Fadnavis said banks should not function solely with a profit motive and must adopt a broader approach towards strengthening agriculture and rural development.

Releasing the Annual Credit Plan for 2026-27, the chief minister expressed concern over the continuous decline in the number of loan accounts in the state despite an increase in overall credit growth.

''Credit is increasing, but the number of accounts is declining. This is a dangerous trend and the SLBC must formulate a focused strategy to address it,'' he said.

Fadnavis said the number of loan accounts in Maharashtra declined from 61.15 lakh in 2022-23 to 56 lakh in 2023-24, 54 lakh in 2024-25 and further to 43 lakh in 2025-26.

''A decline from 61 lakh to 43 lakh accounts is extremely serious. It is time to examine carefully what exactly is going wrong,'' he said.

The chief minister also noted that district central cooperative banks had outperformed nationalised banks in crop loan distribution.

Cooperative banks covered 61 per cent of loan accounts and achieved 85 per cent performance, whereas nationalised banks covered 26 per cent of accounts but recorded only 67 per cent performance, he said.

''This shows nationalised banks are not displaying the required seriousness towards crop loans and term loans. They should aim to achieve at least 80 to 85 per cent of their targets this year,'' the CM added.

Fadnavis also objected to farmers being denied crop loans on the basis of CIBIL scores.

''Complaints regarding CIBIL score conditions are received from every district during the crop loan season. The RBI has clearly stated that crop loans should not be linked to CIBIL score requirements. Bank headquarters must issue clear instructions to branches on this,'' he said.

Reviewing district-wise performance, the chief minister said only Sindhudurg and Dhule districts achieved 90 to 100 per cent targets in crop loan distribution.

Districts such as Raigad, Pune, Satara, Kolhapur, Nashik, Jalgaon, Latur, Amravati, Chandrapur and Bhandara recorded performance between 73 and 90 per cent, while Palghar, Ratnagiri, Sangli, Nandurbar and Nanded required special attention due to poor performance.

Fadnavis also raised concerns regarding the MSME sector, stating that while credit growth was increasing, the number of new accounts was not.

Referring to the 'Tarun' category under the Prime Minister Mudra Yojana, he said only around 7,500 beneficiaries across Maharashtra had availed loans of up to Rs 15 lakh under the category so far.

''This category has the potential to contribute significantly to the economy. Banks should set separate targets and ensure effective implementation,'' he said.

The chief minister said the SLBC should not remain limited to annual meetings and printed reports.

''Banks are not only institutions for profit-making. They are an important part of the country's economic policy and must actively discharge their social responsibility,'' he said.

Deputy Chief Minister Sunetra Pawar stressed the need for greater financial inclusion, rural entrepreneurship and dedicated financial policies for women farmers.

Maharashtra's credit-deposit ratio stood at 98.02 per cent, she said, while calling for focused efforts to improve the ratio further in districts such as Gadchiroli.

Pawar also advocated a separate crop loan scheme for women farmers and easier access to loans for women self-help groups, farmer producer organisations and women entrepreneurs.

Referring to the United Nations declaring 2026 as the ''International Year of Women Farmers'', she said Maharashtra had also declared 2026 as the ''Women Agriculture Year''.

She said women played a key role in agriculture, dairy, livestock, vegetable cultivation and rural industries, but continued to face challenges in accessing independent credit, land ownership, Kisan Credit Cards, mechanisation, technology and markets.

The meeting was attended by Cooperation Minister Babasaheb Patil, Agriculture Minister Dattatray Bharne, Chief Secretary Rajesh Agrawal and senior officials.