Last Updated:March 06, 2026, 23:09 IST

The waiver will cover outstanding loans up to ₹2 lakh that were unpaid by the cut-off date.

In a major relief for distressed farmers, Maharashtra Chief Minister Devendra Fadnavis on Friday announced a farm loan waiver of up to Rs 2 lakh while presenting the state budget for the upcoming financial year.

The scheme, named the “Punyashlok Ahilyadevi Holkar Shetkari Karjamafi Yojana," aims to provide a relief to farmers whose crop loans remain unpaid.

Making the announcement in the lower house of the Assembly, Fadnavis said the Mahayuti government had promised to introduce a loan waiver scheme for farmers after coming to power.

“We had assured farmers that we would bring a loan waiver scheme. A committee has been formed to work out the framework. Today, I am announcing the Punyashlok Ahilyadevi Holkar Shetkari Karjamafi Yojana under which farmers with pending crop loans up to Rs 2 lakh as of September 30, 2025 will receive relief," he said.

According to the announcement, the benefit will be extended to farmers whose crop loans have turned overdue. The waiver will cover outstanding loans up to Rs 2 lakh that were unpaid by the cut-off date. At the same time, the government has attempted to strike a balance by rewarding financial discipline among farmers.

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The Maharashtra Cheif Minister said farmers who have regularly repaid their crop loans will receive an incentive benefit of up to Rs 50,000. The move is aimed at ensuring that those who have maintained repayment discipline are not left out of the relief framework.

The Chief Minister also said that the government will take further decisions based on the recommendations of the committee formed to examine the broader financial health of the agricultural credit system. The objective, he said, is not only to provide temporary relief but also to ensure that farmers are not repeatedly trapped in cycles of debt.

“We want to strengthen the banking system supporting agriculture and find long-term solutions so that farmers do not fall into debt again and again," he said.

Since the Mahayuti government assumed power, opposition parties had repeatedly questioned the delay in announcing the promised loan waiver. Critics had alleged that the government had forgotten its election promise after coming to power.

With Friday’s announcement, the government has attempted to blunt that criticism, though detailed guidelines and eligibility conditions are yet to be released. Apart from the loan waiver, the budget also outlined several initiatives for rural Maharashtra.

The government plans to expand the AgriStack platform, under which more than 1.31 crore farmer IDs have already been created. Farmers are also receiving weather updates and market price information through digital platforms.

The budget further proposes the launch of the Maharashtra Natural Farming Mission within the next two years and special schemes for women involved in dairy and goat farming.

The Gopinath Munde Accident Scheme will also be expanded to include agricultural labourers, widening the social safety net in rural areas.

News india Loan Waiver Returns To Centre Stage In Maharashtra Budget Amid Focus On Farm Distress

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