Maharashtra to Waive Farm Loans Up to ₹2 Lakh for 40 Lakh Farmers

The Maharashtra government has announced a major farm loan waiver scheme aimed at providing relief to lakhs of farmers struggling with debt. The scheme, introduced in the 2026–27 budget, is expected to benefit around 35 to 40 lakh farmers and will cost the state nearly ₹27,000 crore.

The decision comes after continued stress in the agriculture sector due to unseasonal rains, floods, and price fluctuations. Under the plan, farmers will get relief of up to ₹2 lakh on pending crop loans taken till September 30, 2025. This will help them prepare for the upcoming Kharif season without financial pressure.

Key Details of the Loan Waiver Scheme

The scheme has been named the Punyashlok Ahilyadevi Holkar Farmer Debt Waiver Scheme and mainly targets small and marginal farmers. It focuses only on crop loans and sets clear limits on eligibility to ensure the benefits reach the intended group.

At the same time, the government has also included incentives and digital systems to improve transparency and reward responsible borrowers.

Who Will Get the Benefit?

To qualify under the scheme, farmers must meet certain conditions set by the government. The focus is mainly on crop loans within a fixed limit and time period.

• Cut-off date: Only outstanding crop loans up to September 30, 2025, will be included.
• Maximum loan limit: Farmers with pending crop loans of up to ₹2 lakh will get a full waiver of their dues.
• Type of loan: Only crop loans are eligible; loans taken for agricultural equipment or personal use are not covered.
• Beneficiary count: Around 35-40 lakh farmers are expected to benefit, and bank data for nearly 28-30 lakh farmers has already been collected.

Which farmers will not get the benefit?

The scheme does not cover all farmers. Certain categories are excluded based on loan type and amount.

• Those with crop loans above ₹2 lakh
• Those who have taken loans from private money lenders instead of banks
• Defaulters with loans exceeding ₹2 lakh will have to repay the remaining amount themselves

Incentive for Farmers Who Repaid on Time

The government has also announced a reward system for farmers who have cleared their loans on time. Instead of focusing only on defaulters, this step aims to support disciplined borrowers as well.

An eligible person will receive an incentive of up to ₹50,000, and around 20 lakh farmers are expected to benefit. This move is seen as an effort to encourage better repayment behaviour in the future.

How Farmers Will Get the Loan Waiver Benefit?

Farmers will not need to submit any separate application to avail the loan waiver. The entire process will be digital and based on existing bank and government records to make it faster and more transparent.

• Data collection by committee: A committee led by Praveen Pardeshi has been set up to collect farmers’ loan data from all banks, including nationalised, cooperative, and rural banks.
• Agri Stack digital platform: The Maharashtra government will use the Agri Stack system, which combines data like land records, crop details, Aadhaar, and bank loans. This will help in the automatic verification of eligible farmers.
• Direct transfer to loan accounts: The waiver amount will be directly credited to the farmers’ loan accounts, clearing their outstanding dues. Farmers will not need to visit banks.
• Implementation timeline: The scheme will be fully implemented before the start of the Kharif season (June-July).

Other Key Schemes for Farmers

Along with the loan waiver, the Maharashtra government has announced additional support measures in the 2026-27 budget to help farmers reduce costs and improve income.

• Free electricity for irrigation pumps up to 7.5 HP.
• Promotion of natural farming to reduce chemical use.
• Digital platform to help farmers access export markets.
• Accident compensation scheme for farm workers under the Gopinath Munde plan.

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