Maharashtra Approves Farm Loan Waiver up to ₹2 Lakh for Farmers

In a major relief measure for farmers, the Maharashtra Cabinet, chaired by Chief Minister Devendra Fadnavis, approved the Punyashlok Ahilyadevi Holkar Shetkari Karjmafi Yojana during its meeting on June 2. Under this scheme, agricultural loans of up to ₹2 lakh for distressed farmers will be completely waived.

The decision is expected to benefit nearly 56 lakh farmers across the state by freeing them from the burden of outstanding agricultural debt. According to the proposal approved by the Cabinet, only those farmers whose agricultural loans remained unpaid as of September 30, 2025, will be eligible for the loan waiver.

The state government has clarified that the scheme is designed to be transparent and comprehensive, without imposing unnecessary restrictions on eligible beneficiaries.

₹50,000 Incentive for Regular Loan Repayers

To encourage financial discipline among farmers, Chief Minister Devendra Fadnavis also announced a special incentive for those who have consistently repaid their loans on time and have not defaulted.

Farmers with a good repayment record will receive a ₹50,000 incentive grant as a reward for maintaining financial responsibility. This move aims to ensure that honest borrowers are not disadvantaged by the loan waiver program.

Financial Impact on State Budget

The loan waiver scheme is expected to place an additional financial burden of approximately ₹36,585 crore on the Maharashtra state treasury. However, provisions for the scheme were already incorporated into the state's ₹7.69 lakh crore Annual Budget for 2026–27, previously presented by the Chief Minister.

While the substantial allocation is likely to increase pressure on the state budget, the government has emphasized that providing relief to farmers remains a top priority alongside investments in infrastructure development and social welfare programs.

Fulfillment of a Major Election Promise

The farm loan waiver is not a sudden policy decision. It fulfills one of the key promises made by the BJP-led Mahayuti alliance to voters before the Maharashtra Assembly elections. The government has positioned the initiative as a significant step toward improving the financial stability and welfare of the state's farming community.