Lakhs of farmers in the country have outstanding loans from cooperative and nationalized banks. Many times, if the farmers are unable to repay the loan, they are declared defaulters, after which the path to taking further loans is closed. A legal contract is signed while taking a loan, but sometimes due to crop failure, bad weather, or other reasons, farmers forget to repay the loan installments. Many times banks call the farmers and remind them to repay the loan, but after one or two chances, banks start adding expenses like late fees, penalties, legal costs, etc. to the loan as per their terms and conditions. , Due to which the loan amount increases.
This loan falls like a burden on the farmers, which is not within the power of every farmer to repay. Many times the farmer has to sell even the land kept as security. Now there is a need for money in farming, hence the question of farmers remains whether they can take loans from banks or other financial institutions even after being declared a defaulters.
Who are defaulter farmers?
When farmers are unable to pay the interest installments or EMI of the old loan on time, banks and financial institutions declare the farmers as defaulters. In such a situation, farmers may face problems in taking loans again, because every bank passes new loans only after seeing the old records.
In such a situation, questions also arise on the credibility of the farmer. Real worries arise when calls are received from loan-granting banks and recovery agents to recover the loan amount. Many times farmers are also given a second chance, in which farmers can improve their credit status by depositing the loan amount along with late fees.
Which loans can farmers take?
Farmers get many types of loans for everything from farming to personal needs, which include Kisan Credit Card, Tractor Loan, New Tractor Loan, Loan against Tractor, Personal Loan, Mortgage Loan, Gold Loan, etc. Many times farmers are also given loans against the security of land or vehicles so that they can meet their personal needs.
Can defaulter farmers take loans again?
According to experts, CIBIL score or credit status is checked to give a loan to any farmer or other professional. If the farmer has repaid the old loan, even if late, then he will be eligible for the loan again.
In such a situation, to get a loan, it is mandatory to have a CIBIL score of more than 750. Many financial institutions in India are ready to give loans to applicants with CIBIL scores of more than 300, but their interest rates are quite high.
How to improve CIBIL score
To avoid being declared a defaulter, the farmer will have to improve his CIBIL score. For this, the interest installment or EMI of the bank from which the loan has been taken must be paid on time.
Experts say that farmers should get the loan according to their income so that it becomes easier to repay it. Always take one loan at a time. Many times, as the debt burden increases, there are difficulties in repaying the loan.
Agriculture is a work full of uncertainties. Under good circumstances, you can repay one loan, but it may be difficult to repay it by taking a second and third loan in a row. In such a situation, one can take a cooperative bank or farmer credit card loan, the interest rates of which are very low.
The loan is available on these conditions
Many private banks and companies have paved the way for loans for defaulting farmers. The only condition is that the farmer has to give security or guarantee, although many state governments also bring schemes like loan waivers or interest waivers. Now instead of cash, farmers are also given the facility to buy seeds, fertilizers, fertilizers, and machines on loan.
