Paddy farmers in the State are now finding it hard to get bank loans because their CIBIL scores are falling. This drop is happening through no fault of the farmers. The problem started after the PRS (paddy receipt sheet) loan system was introduced for procuring paddy. Many farmers did not know that government payments for their paddy were actually recorded as loans, with the government acting as guarantor. Sasidharan P.A., a retired engineer who became a farmer in Thrissur, said, "I never had any liability with my bank. But when I applied for a loan, I was shocked to find that my CIBIL score had dropped to 713 despite having a substantial fixed deposit. My score should have been around 875-900." He added, "When I checked with the bank, I was surprised to learn that I had supposedly availed a ₹30 lakh loan over the past three years, with a balance of ₹18 lakh still to be repaid. In reality, this was the amount for my paddy procurement, treated as a loan, and the government’s delay in paying the bank caused my CIBIL score to fall." Hundreds of farmers across the State are in the same boat, many unaware of the issue until they apply for new loans. Pandiyodu Prabhakaran, general secretary of the Desiya Karshaka Samrakshana Samiti, said, "Most farmers will only realise the situation when they approach the bank for a loan." Another farmer, K. Muraleedharan from Palakkad, said he was denied a loan in 2025 for the same reason. "At first, I did not buy the bank’s explanation. It was only when a friend told me that it was due to the PRS loan scheme for our procured paddy that I understood and accepted it," he said. Though the State government guarantees these loans, technically the farmers are liable. Mr. Sasidharan explained, "From the bank’s perspective, the question is simple: are you a debtor or not? If you are considered a debtor, your CIBIL score drops. Almost all paddy farmers are classified as debtors in this account."