Despite the hike in collateral-free crop loan limits from Rs 1.60 lakh to Rs 2 lakh effective January 1, 2025, farmers in Coimbatore and Tiruppur allege that several cooperative societies are still disbursing less than the revised amount, media reports say.
They also claim that only previous borrowers are being given loans this year, while new applicants are being rejected. Esan Murugasamy, founder of Tamilaga Vivasayigal Pathukappu Aangam, said Primary Agricultural Cooperative Banks are supposed to offer interest-free loans up to Rs 2 lakh, repayable in 12 months.
Instead, some societies cap loans below Rs 1.60 lakh, forcing first-time borrowers to approach private moneylenders.