Farm loan waiver in Maharashtra approved, offering relief up to INR 2 lakh

The Maharashtra cabinet on Tuesday cleared the Punyashlok Ahilyadevi Holkar Shetkari Karja-mukti Yojana. The plan offered a farm loan waiver of up to Rs 2 lakh. It also added incentive support for farmers who repaid loans on time. The decision came at a cabinet meeting led by Chief Minister Devendra Fadnavis, an official statement said.

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The scheme had three parts, the government said. These were a loan waiver, a one-time settlement (OTS), and incentive benefits. Eligibility did not depend on landholding size. However, several groups were kept out. These included political party office-bearers, government staff, income-tax payers, and cooperative employees earning over Rs 25,000 monthly.

Farm loan waiver scheme: Who qualified for Rs 2 lakh relief

Under the waiver part, farmers with short-term crop loan dues up to Rs 2 lakh got full relief. The total included principal and interest. The loan had to be taken between April 1, 2019, and March 31, 2025. It also had to be overdue on September 30, 2025, and unpaid until March 31, 2026.

Borrowers with dues above Rs 2 lakh fell under the OTS part. These farmers had to pay the amount beyond Rs 2 lakh first. After that payment, the farmer became eligible for a waiver of Rs 2 lakh. The cabinet gave such borrowers time until March 31, 2027, to deposit their share.

Farm loan waiver scheme: Incentive benefits and Rs 50,000 support

The incentive part applied to farmers who repaid crop loans in time. The farmer had to do this in at least two years. The years were from 2022-23 to 2024-25. Eligible farmers could receive up to Rs 50,000. Those taking crop loans in the current year also had to repay on time.

Another clause covered farmers with overdue amounts above Rs 50,000. Such farmers could get a grant of Rs 50,000. The farmer first had to pay the balance beyond Rs 50,000. This step aimed to help the farmer become debt-free. The deadline for this payment was also March 31, 2027.

The scheme also included some past beneficiaries. Farmers who got help under the Mahatma Jyotirao Phule Shetkari Karjamukti Yojana, 2019, later defaulted on new crop loans. These farmers could get relief up to Rs 50,000. The state said this would apply only under certain conditions.

Farm loan waiver scheme: Banks covered and monitoring process

The waiver covered loans taken from many lenders. These included nationalised banks, private banks, and regional rural banks. It also applied to district central cooperative banks and primary agricultural credit societies. A high-level committee led by the Chief Secretary monitored implementation. Another panel led by the Additional Chief Secretary Finance negotiated settlements and lender concessions.

Aadhaar authentication was mandatory for beneficiaries. Registration on the AgriStack platform was also required. The government said it developed a dedicated digital portal for roll-out. The cabinet welcomed the measure and called it major relief. Ministers praised it in the meeting and said it helped lakhs of cultivators.

Opposition parties questioned the execution and demanded wider relief. Congress said the loan waiver should not remain merely an announcement. The party cited doubts based on earlier roll-outs. It referred to around 80 lakh women found ineligible after Mukhyamantri Majhi Ladki Bahin Yojana, and urged caution on the 56 lakh farmers claim. NCP SP spokesperson Clyde Crasto also sought a blanket waiver without conditions.

With inputs from PTI