Mumbai: In a major relief measure ahead of the monsoon season, the Maharashtra cabinet on Tuesday approved a comprehensive farm loan waiver scheme worth ₹36,585 crore, benefiting an estimated 5.6 million farmers across the state. The decision, taken at a cabinet meeting chaired by Chief Minister Devendra Fadnavis, fulfills a key poll promise made by the ruling Mahayuti alliance ahead of the 2024 assembly elections .
Scheme Named After Holkar Queen
The scheme has been officially named the 'Punyashlok Ahilyadevi Holkar Shetkari Karja-mukti Yojana', after the 18th-century Maratha queen known for her welfare initiatives . Under the loan waiver component, farmers whose total outstanding short-term crop loans — including principal and interest — are up to ₹2 lakh will be eligible for 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 .
One-Time Settlement for Larger Dues
For farmers whose outstanding dues exceed ₹2 lakh, the scheme offers a one-time settlement (OTS) option. Such borrowers will need to clear the amount exceeding ₹2 lakh, after which they become eligible for the ₹2 lakh waiver. They have been given time until March 31, 2027, to deposit their share of the outstanding amount .
Incentive for Regular Loan Repayment
In a unique provision aimed at encouraging financial discipline, the cabinet has decided to provide an incentive grant of up to ₹50,000 to farmers who have regularly repaid their crop loans on time. Eligible beneficiaries must have repaid loans within the prescribed period in at least two of the three financial years from 2022-23 to 2024-25 .
Exclusion Criteria
The scheme excludes salaried individuals earning more than ₹25,000 per month, income tax payers, retired individuals with pension income above ₹25,000, current and former elected representatives, and government employees .
Implementation Timeline
Chief Minister Fadnavis has directed officials to ensure that the waived loan amount is credited to eligible farmers' accounts by June 20 . However, the government has not made an official public announcement due to the Model Code of Conduct currently in force for the Legislative Council elections scheduled for June 18. Fadnavis stated that a formal announcement will be made after the election code is lifted .
Coverage of Loan Accounts
The scheme will cover more than 6.5 million loan accounts across nationalized banks, private banks, regional rural banks, district central cooperative banks, and primary agricultural credit societies . Aadhaar authentication and registration on the AgriStack platform will be mandatory for beneficiaries
