Maharashtra Loan Waiver: Up to Rs 2 Lakh Per Farmer, Incentives for Regular Repayers

The Maharashtra government has launched the Punyashlok Ahilyadevi Holkar Farm Loan Waiver Scheme 2026, offering relief to debt-ridden farmers. The scheme covers both defaulters and those who have repaid loans regularly. Below are key details clarified by the authorities.

Waiver Amount: Outstanding crop loans, including principal and interest, will be waived up to Rs 2 lakh per farmer.

Eligible Loan Period: Short-term crop loans taken between April 1, 2019, and March 31, 2025, that were outstanding as of September 30, 2025, and remained unpaid until March 31, 2026, qualify for the waiver.

One-Time Settlement for Higher Loans: Farmers with loans exceeding Rs 2 lakh can benefit under a one-time settlement. They must first pay the amount above Rs 2 lakh, after which the government will credit Rs 2 lakh to their account. The deadline to deposit the excess amount is March 31, 2027.

Incentive for Regular Repayers: Farmers who repaid crop loans on time in at least two of the three years (2022-23, 2023-24, 2024-25) are eligible for an incentive of up to Rs 50,000. They must also repay their 2025-26 and 2026-27 loans on time. If the loan amount was less than Rs 50,000, the incentive will equal the principal and interest paid, with a minimum of Rs 5,000.

Previous Waiver Beneficiaries: Farmers who availed the 2019 Mahatma Jyotirao Phule loan waiver scheme can still get relief on new outstanding loans taken between April 1, 2019, and March 31, 2025. If the outstanding balance is up to Rs 50,000, it will be fully waived. For higher amounts, they can opt for the one-time settlement after paying the excess over Rs 50,000, with the same March 31, 2027 deadline.

Restructured Loans: Outstanding instalments of loans restructured due to drought are also eligible for the waiver.

Land Ownership: No conditions on landholding size; all farmers are eligible.

Application Process: The process is entirely online. Banks will submit farmer information to the government portal. No written application is needed.

Mandatory Requirement: Aadhaar authentication and registration on the AgriStack system are mandatory to receive benefits. However, officials have stated that no farmer will be excluded solely for not being registered, but registration is strongly advised.

Farmers with queries can approach their bank or the district agriculture office for assistance.