In order to provide more relief to farmers, two significant changes in the existing crop loan waiver scheme have been announced by the Devendra Fadnavis government. Under the Punyashlok Ahilyadevi Holkar Shetkari Karjmukti Yojana, the Maharashtra cabinet abolished the up to Rs 50,000 loan-waiver limit for 13 lakh farmers from the 2019 scheme, granting them full relief up to Rs 2 lakh. It also decided to permit incentive payments to farmers even if they hadn’t repaid loans regularly in 2026-27, if they had made repayments in two out of three previous years.
New criteria of loan waiver scheme
In the recently held state cabinet meeting, it was decided to remove the Rs 50,000 loan waiver cap for farmers availing the benefit of Mahatma Jyotirao Phule Loan Waiver Scheme, and instead set a new cap of Rs 2 lakh loan waiver for all eligible farmers. Along with this, the state government has also abolished the condition of regular repayment in 2026-27. With this, the condition of taking a new loan and repaying it on time will no longer be applicable. Maharashtra Sevak Devendra Fadnavis had announced these relaxations in loan waiver while replying to a question during a discussion held last week in the recently held monsoon session of the Assembly. Due to this big loan waiver drive by the government, Rs 36,585 crore farm loans will be waived off benefiting 56 lakh farmers of the state.
The government is making every possible effort to free farmers from debt!
To provide relief to farmers in the state facing hardship due to natural calamities, the state government announced the ‘Punyashlok Ahilyadevi Holkar Shetkari Karjmukti Yojana’ during the 2026 budget session. This loan waiver scheme was approved during the state cabinet meeting held on May 2, and the administration issued the official order on June 2, 2026. Additionally, a special cabinet sub-committee, chaired by the Chief Minister and comprising both Deputy Chief Ministers, as well as the Revenue Minister, Agriculture Minister, and Ministers of state, were constituted to review the scheme and modify its criteria. Furthermore, the government undertook the responsibility of repaying loans of up to ₹2 lakh against each farmer to enable him for the immediate provision of new crop loans, while also ensuring that farmers with outstanding loans exceeding ₹2 lakh faced no obstacles in obtaining new loans.
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