Kochi: The High Court has ruled that farmers’ CIBIL scores should remain unaffected by the agreement between Supplyco and the bank. Emphasising that PRS loans should not impact the credit scores of farmers, Justice Devan Ramachandran questioned how farmers could be classified as loan recipients when Supplyco is the borrower from the bank.
This directive comes as part of an interim order in response to a series of petitions filed in the High Court concerning the decline in CIBIL scores linked to PRS loans. The court specified that banks should not categorise farmers selling paddy to the government through the rice procurement scheme as borrowers. Instead, the court urged Supplyco to provide clarification on the actual borrower’s identity and instructed the organisation to submit a detailed report addressing this matter.
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