Maharashtra cabinet approves farm loan waiver scheme up to ₹2 lakh

CM Devendra Fadnavis had announced that the scheme — “Punyashlok Ahilyadevi Holkar Shetkari Karjmukti Yojana 2026” — would be rolled out before June 30.

The Maharashtra cabinet on Tuesday approved the 'Punyashlok Ahilyadevi Holkar Shetkari Karja-mukti Yojana' to provide farm loan waiver of up to Rs 2 lakh, and also introduced incentive benefits for those farmers who have repaid their loans on time. The decision was taken at a cabinet meeting chaired by Chief Minister Devendra Fadnavis, an official statement said. The scheme has three components -- loan waiver, one-time settlement (OTS) and incentive benefits -- and there will be no landholding criterion for eligibility, it said. Under the waiver component, farmers whose total outstanding short-term crop loans, including principal and interest, are up to Rs 2 lakh will be eligible for a complete debt relief. The loans must have been disbursed between April 1, 2019, and March 31, 2025, remained overdue as of September 30, 2025, and unpaid till March 31, 2026. The farmers whose dues exceed Rs 2 lakh will be covered under the OTS component. Such borrowers will have to clear the amount