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Maharashtra approves scheme for farm loan waivers of up to Rs 2 lakh

Scroll | June 4, 2026 6:39 AM CST

The Maharashtra Cabinet on Tuesday approved a farm debt relief scheme to provide loan waivers of up to Rs 2 lakh to farmers in the state.

Chief Minister Devendra Fadnavis had announced the scheme, named Punyashlok Ahilyadevi Holkar Shetkari Karjamukti Yojana, while presenting the state Budget in March. The Rs 36,585-crore scheme is expected to benefit around 55.72 lakh farmers.

It has three components: loan waiver, one-time settlement and incentive benefits for the farmers who have repaid their loans on time.

Under the first component, farmers with outstanding crop loans of up to Rs 2 lakh that remained overdue on September 30, 2025, and unpaid by March 31 this year will get a complete waiver.

This would apply to one or more loan accounts and farmers can avail the scheme irrespective of their landholding size.

The one-time settlement component will cover farmers with crop debts above Rs 2 lakh. They will be given a grace period till March 31, 2027, to pay the amount exceeding Rs 2 lakh. Once that is done, the government will waive up to Rs 2 lakh in debt.

Under the last component, the...