Technical Issues and Delays Impact Crop Loan Access in Coimbatore
Synopsis
Farmers in Coimbatore are facing significant challenges in securing crop loans due to ongoing technical issues and procedural delays. This situation arises despite the introduction of an online application system designed to expedite the loan approval process.
Key Takeaways
Farmers in Coimbatore are facing significant challenges with online crop loan applications.
Technical glitches and procedural delays are causing frustration.
Eligible farmers can apply for loans up to Rs 2 lakh, interest-free for a year.
Server issues have led to delays in application submissions.
Loan amounts are being reduced based on updated crop information.
Coimbatore, March 3 (NationPress) Farmers in various regions of Coimbatore district have reported that technical difficulties and administrative delays are obstructing their ability to secure crop loans from Primary Agricultural Cooperative Societies (PACS), despite the Tamil Nadu government's effort to implement an online application system to accelerate loan approvals.
The Cooperative Department has recently modernized the crop loan application process, allowing farmers to apply online with a commitment to same-day processing.
Eligible farmers can receive crop loans of up to Rs 2 lakh, interest-free for a duration of 12 months, based on the crops they grow on their land.
Before January 2026, applications were submitted manually at PACS offices, which often resulted in a waiting period of up to 15 days for loan disbursal after submission.
With the introduction of digitalization, the department aimed to eradicate delays and facilitate quicker disbursement. Nevertheless, many farmers assert that the transition has not been seamless.
Ayyappan, a farmer from Ambothi village in Annur block, shared that server-related problems have postponed the application submission.
"Since the digital shift, we find ourselves waiting at least 15 days just to submit our application due to server complications. Additionally, the requirement to upload the 'chitta' (land revenue record) has also been hindered as Revenue Department officials have been on strike since last week," he stated.
Representatives for farmers have also voiced concerns regarding reductions in approved loan amounts. R. Periyasamy, vice-president of the Tamil Nadu Vivasayigal Sangam, noted that loan limits are being reduced based on updated crop information submitted online.
"If a farmer requests a loan of Rs 1.80 lakh, the approved amount is frequently lower. Farmers are now required to upload crop details along with their GPS location, and any discrepancies in crop patterns can lead to diminished loan limits," he claimed.
In response to these concerns, A. Alagiri, Joint Registrar of the Cooperative Department, stated that the online system has been operational for over a month, processing over 1,200 applications and disbursing loans.
He acknowledged the issues related to servers but assured that farmers who are unable to submit their applications online for more than two days are allowed to apply offline.
He emphasized that loan limits are strictly determined based on the crops cultivated, in line with established norms.
Point of View
The situation in Coimbatore illustrates the complexities of digital transformation within agricultural financing. While the government's intent to streamline processes is commendable, the execution has faced significant hurdles. The farmers' frustrations highlight the need for more robust infrastructure and support during such transitions.
NationPress
6 May 2026
Frequently Asked Questions
What are the main issues farmers are facing in Coimbatore regarding crop loans?
Farmers are experiencing technical glitches and procedural delays that hinder their access to crop loans from PACS, despite the introduction of an online application system.
How much can farmers borrow under the crop loan scheme?
Eligible farmers can avail crop loans of up to Rs 2 lakh, interest-free for a period of 12 months, based on the crops they cultivate.
What happens if farmers cannot submit applications online?
Farmers who are unable to submit their applications online for more than two days are permitted to apply offline.
What is causing the delay in loan processing?
Server-related issues and the requirement to upload land revenue records are significant factors contributing to the delays in loan processing.
Are loan limits being affected by updated crop information?
Yes, loan limits are being curtailed based on revised crop details submitted online, which has raised concerns among farmers.
