TIRUCHY: When the Cooperative Societies hesitate to disburse crop loans, the farmers would seek the private money lenders, including micro credit firms, which would have hefty interest rates between 36 and 60 per cent. This would sometimes cause farmers to lose their properties that they had pledged.
According to farmers, the cooperative societies have been demanding several documents, including a no-due certificate from banks where they have their accounts.
As it is time-consuming, the farmers who have already prepared their land for cultivation, opt for private firms and local money lenders at the cost of huge interest.
“When I approached the society, they asked me to get the details of the loan available from the other banks. Since it is time-consuming, I opted to obtain a loan from a local moneylender. I have to give 60 per cent interest, and the moneylender had deducted the interest money and handed over the remaining, with which I started the cultivation,” said Anbu Velan, a farmer from Nagapattinam.
He said that the crop loans he had availed earlier with the cooperative society had no interest, but presently, he had to pay a hefty interest to the moneylenders who had also taken some documents for surety.
Meanwhile, P Viswanathan, president of Tamil Nadu Tank and River Irrigation Farmers Association, appealed to the elected members to find a solution by the monsoon session in the Parliament.
He urged that the state government recommend to the union government to streamline the crop loan disbursement. The state government should also issue a GO regarding the CIBIL score issue.
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