Maharashtra Govt. Approves Farm Loan Waiver Of Up To Rs 2 Lakh For 56 Lakh Farmers

The Maharashtra cabinet has approved a farm loan waiver scheme that will provide debt relief of up to Rs 2 lakh to eligible farmers across the state. Named the Punyashlok Ahilyadevi Holkar Shetkari Karja-mukti Yojana, the scheme is expected to benefit around 56 lakh farmers.

The decision was taken at a cabinet meeting chaired by Chief Minister Devendra Fadnavis on June 2. The scheme fulfils a key promise made by the ruling Mahayuti alliance ahead of the state elections and includes three components: loan waiver, one-time settlement (OTS) and incentives for prompt repayment.

Who Will Get The Loan Waiver

Farmers with outstanding short-term crop loans of up to Rs 2 lakh, including both principal and interest, will be eligible for a full waiver. The loans must have been disbursed between April 1, 2019, and March 31, 2025.

To qualify, the loan account should have remained overdue as of September 30, 2025, and unpaid until March 31, 2026. The state government has also clarified that there is no landholding limit for availing the benefit.

Relief For Farmers With Larger Outstanding Loans

Farmers whose outstanding crop loan amount exceeds Rs 2 lakh will be covered under the OTS component. They will have to repay the amount above Rs 2 lakh to become eligible for the waiver. Such borrowers have been given time until March 31, 2027, to clear their share of the dues.

Another provision allows farmers with overdue amounts above Rs 50,000 to receive a grant of Rs 50,000 after paying the remaining balance. This measure is aimed at helping borrowers clear their outstanding liabilities and become debt-free, stated the official release.

Incentive For Regular Repayment

Apart from debt relief, the scheme offers incentives to farmers who have repaid their loan dues on time. Borrowers who cleared crop loans within the due date in at least two of the three financial years from 2022-23 to 2024-25 will be eligible for an incentive grant of up to Rs 50,000.

However, farmers who have taken fresh crop loans during the current financial year will need to repay those loans within the stipulated period to receive the incentive.

Who Are Excluded

The scheme excludes political party office-bearers, government employees, income-tax payers and employees of co-operative institutions drawing a monthly salary of more than Rs 25,000.

Farmers who received benefits under the Mahatma Jyotirao Phule Shetkari Karjamukti Yojana in 2019 but later defaulted on fresh crop loans may also receive relief of up to Rs 50,000, subject to prescribed conditions.

The benefits will cover crop loans taken from nationalised banks, private banks, regional rural banks, district central co-operative banks and primary agricultural credit societies. Aadhaar authentication and registration on AgriStack will be mandatory. The state government will also launch a dedicated digital portal to process applications and monitor implementation of the scheme.