Maharashtra Approves ₹36,585 Crore Farm Loan Waiver For 55.7 Lakh Farmers Ahead Of Monsoon Sowing Season

Mumbai: In one of the biggest relief measures for the agrarian sector in recent years, the Sources said Maharashtra Cabinet chaired by CM Devendra Fadanvis on Tuesday approved a massive farm loan waiver package worth ₹36,585 crore, benefiting nearly 55.7 lakh farmers across the state. The decision comes amid concerns over inadequate rainfall in several regions and the possibility of drought-like conditions, which have heightened financial stress on farmers already burdened by debt.

Scheme fulfills key Mahayuti alliance poll promise from 2024

The loan waiver, to be implemented under the Punyashlok Ahilyabai Holkar Shetkari Karjmukti Yojana, fulfills a key promise made by the ruling Mahayuti alliance during the 2024 Assembly election campaign. Chief Minister Devendra Fadnavis had announced the scheme during the state budget session earlier this year, describing it as a major intervention to provide financial relief to distressed farmers.

According to the Cabinet decision, farmers with overdue crop loans of up to ₹2 lakh as of September 30, 2025, will be eligible for a complete waiver of their outstanding dues. The government will directly repay the eligible loan amount to lending institutions, enabling farmers to regain access to fresh credit.

CM directs amount credited before June 20 for fresh credit access

Officials said Chief Minister Fadnavis directed the Cooperation Department to ensure that the loan waiver amount is credited before June 20 and that farmers' loan accounts are regularised at the earliest. The move is expected to allow lakhs of farmers to obtain fresh crop loans ahead of the upcoming sowing season.

The scheme also includes an incentive for farmers who have regularly repaid their crop loans despite financial challenges. Such farmers will receive an incentive grant of ₹50,000, a measure aimed at rewarding credit discipline and addressing concerns that loan waivers often benefit only defaulters.

Loan portion above ₹2 lakh must be repaid by borrower first

For farmers whose outstanding loans exceed ₹2 lakh, the government has stipulated that the amount above the ₹2 lakh threshold must first be repaid by the borrower. Once that payment is made, the state will waive the eligible portion of up to ₹2 lakh.

With over 55 lakh beneficiaries and a financial outlay exceeding ₹36,000 crore, the scheme is among the largest farm debt relief initiatives undertaken by Maharashtra. The government expects the measure to ease rural distress, improve farmers' access to institutional credit and provide much-needed support ahead of the monsoon cropping season.

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