The Maharashtra Cabinet has greenlit the Punyashlok Ahilyadevi Holkar Farmer Debt Relief Scheme, which offers loan waivers of up to Rs 2 lakh. The historic scheme includes debt relief, OTS, and incentive benefits for timely repayments.
The Maharashtra Cabinet today approved the Punyashlok Ahilyadevi Holkar Farmer Debt Relief Scheme, which will provide loan waivers of up to Rs 2 lakh to farmers in Maharashtra. The meeting was chaired by Chief Minister Devendra Fadnavis.
There will be no landholding criterion for eligibility, and loans up to Rs 2 lakh will be eligible for waiver. Cabinet members welcomed the decision with applause, describing it as a historic step that will provide major relief to farmers across the state. The scheme has three components: Debt Relief, One-Time Settlement (OTS), and Incentive Benefits, ensuring that a large number of farmers benefit.
Scheme Components and Benefits
Farmers whose outstanding loans are below Rs 2 lakh will become completely debt-free after receiving the waiver. Farmers with outstanding loans exceeding Rs 2 lakh will be required to repay the amount above Rs 2 lakh by March 31, 2027. Upon doing so, the government will deposit Rs 2 lakh into their loan accounts. Additionally, farmers who regularly repay loans will be eligible for incentive assistance of up to Rs 50,000.
Eligibility and Conditions
Political office-bearers, government employees, income-tax payers, and officers/employees of cooperative institutions earning more than Rs 25,000 per month will not be eligible.
Farmers who took short-term crop loans between April 1, 2019 and March 31, 2025, with outstanding dues as of September 30, 2025, that remain unpaid by March 31, 2026, will receive a waiver of up to Rs 2 lakh, including principal and interest, irrespective of landholding size.
For farmers whose combined outstanding crop loan dues (principal plus interest) exceed Rs 2 lakh as of September 30, 2025, and remain unpaid by March 31, 2026, the amount above Rs 2 lakh must first be repaid to the bank or institution. After repayment of the excess amount, the farmer will receive the benefit of a Rs 2 lakh waiver under the OTS scheme.
The same condition applies to restructured or re-restructured crop loans taken between April 1, 2019 and March 31, 2025. Farmers will have until March 31, 2027, to deposit their share of the amount exceeding Rs 2 lakh.
Farmers whose total dues exceed Rs 50,000 will receive Rs 50,000 per farmer after depositing the entire outstanding amount above Rs 50,000, thereby enabling them to become debt-free. The deadline for depositing the farmer’s share above Rs 50,000 is also March 31, 2027.
Farmers who already benefited under the Mahatma Jyotirao Phule Farmer Loan Waiver Scheme 2019 and subsequently defaulted on fresh crop loans will be eligible for debt relief of up to Rs 50,000, provided the loans were taken between April 1, 2019 and March 31, 2025 and remained unpaid as of the specified dates.
To encourage timely repayment, farmers who borrowed crop loans in any two out of the three financial years 2022-23, 2023-24, and 2024-25, and repaid them by June 30 following the financial year (or within the bank’s prescribed timeline), will receive Rs 50,000 per farmer. However, if such farmers have taken a crop loan in the current financial year, they must also repay that loan on time to remain eligible.
Implementation and Oversight
A high-level committee chaired by the Chief Secretary of Maharashtra will oversee the implementation of the scheme. Another committee, chaired by the Additional Chief Secretary (Finance), will negotiate with nationalised, private, and regional rural banks regarding discounts on non-performing agricultural loans.
The committee will include representatives from the Cooperation Department, Maha-IT, the Maharashtra State Cooperative Bank, the State-Level Bankers’ Committee, and the office of the Cooperation Commissioner.
The scheme will apply to loans obtained from Nationalised, Private, Regional rural banks, and District central cooperative banks and Primary Agricultural Credit Cooperative Societies (including loans disbursed from their own funds) Farmers will be required to complete Aadhaar authentication, and registration on the AgriStack platform will be mandatory. An updated digital portal will be developed for the implementation of the scheme. (ANI)
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