Coimbatore, March 3 Farmers in parts of the Coimbatore district have alleged that technical glitches and procedural delays are hindering their access to crop loans from Primary Agricultural Cooperative Societies (PACS), even after the Tamil Nadu government introduced an online application system to expedite approvals.
The Cooperative Department recently digitized the crop loan process, enabling farmers to apply online with the promise of same-day processing.
Under the scheme, eligible farmers can avail crop loans of up to Rs 2 lakh, with interest-free repayment for 12 months, based on the crops cultivated on their land.
Until January 2026, applications were accepted manually at PACS offices, and farmers typically had to wait up to 15 days after submission to receive the loan.
With digitalization, the department aimed to eliminate delays and ensure faster disbursement. However, several farmers claim that the transition has not been smooth.
Ayyappan, a farmer from Ambothi village in Annur block, said that server-related issues have delayed the submission of applications.
"After digitalization, we are forced to wait at least 15 days even to submit the application due to server problems. We also need to upload the 'chitta' (land revenue record), but that process has slowed down as Revenue Department officials have been on strike since last week," he said.
Farmers' representatives also raised concerns about reductions in sanctioned loan amounts. R. Periyasamy, vice-president of the Tamil Nadu Vivasayigal Sangam, said that loan limits are being curtailed based on revised crop details submitted online.
"If a farmer applies for a Rs 1.80 lakh loan, the sanctioned amount is often lower. Farmers are now required to upload crop details along with GPS location, and any variation in crop pattern results in a reduced loan limit," he alleged.
Responding to the complaints, A. Alagiri, Joint Registrar of the Cooperative Department, said that the online system has been functional for the past month and more than 1,200 applications have already been processed and loans disbursed.
He acknowledged that there had been grievances regarding server issues but said that farmers unable to submit applications online for more than two days are permitted to apply offline.
He reiterated that loan limits are fixed strictly based on the crops cultivated, in accordance with prescribed norms.