Farmers in Coimbatore Face Challenges with New Online Crop Loan System

Issues with Online Crop Loan Applications

Coimbatore, March 3: Farmers in various regions of Coimbatore district have reported that technical issues and procedural holdups are obstructing their access to crop loans from Primary Agricultural Cooperative Societies (PACS). This comes despite the Tamil Nadu government's recent implementation of an online application system intended to expedite loan approvals.

The Cooperative Department has digitized the crop loan application process, allowing farmers to submit their requests online with the expectation of same-day processing.

Eligible farmers can secure crop loans of up to Rs 2 lakh, interest-free for a year, depending on the crops they cultivate.

Prior to January 2026, applications were processed manually at PACS offices, leading to a waiting period of up to 15 days for loan disbursement.

With the introduction of digital applications, the department aimed to reduce delays and facilitate quicker loan distribution. However, many farmers have expressed dissatisfaction with the transition.

Ayyappan, a farmer from Ambothi village in the Annur block, mentioned that server issues have caused delays in submitting applications.

"Since the digital system was introduced, we often have to wait at least 15 days just to submit our applications due to server problems. Additionally, we need to upload the 'chitta' (land revenue record), but this process has been hindered as Revenue Department officials have been on strike for the past week," he explained.

Representatives of the farming community have also voiced concerns regarding reductions in the sanctioned loan amounts. R. Periyasamy, vice-president of the Tamil Nadu Vivasayigal Sangam, noted that loan limits are being decreased based on the updated crop information submitted online.

"When a farmer applies for a loan of Rs 1.80 lakh, the approved amount is frequently lower. Now, farmers must upload crop details along with GPS coordinates, and any discrepancies in crop patterns lead to a diminished loan limit," he claimed.

In response to these issues, A. Alagiri, Joint Registrar of the Cooperative Department, stated that the online system has been operational for over a month, with more than 1,200 applications processed and loans disbursed.

He acknowledged the complaints regarding server problems but mentioned 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 grown, adhering to established guidelines.