Daijiworld Media Network - Mumbai
Mumbai, Jun 3: The Maharashtra government has introduced stringent eligibility conditions for its Rs 36,585-crore Punyashlok Ahilyadevi Holkar Farm Loan Waiver Scheme, aiming to ensure that the benefits reach genuinely distressed farming families. The scheme is expected to benefit nearly 55.72 lakh farmers, while around 16.74 lakh cultivators are likely to become debt-free with their land records cleared of loan liabilities.
Under the guidelines approved by the state Cabinet, several categories have been excluded from availing the loan waiver. Current and former ministers, Members of Parliament, legislators, members of local self-government bodies, as well as government employees and pensioners receiving a gross monthly salary or pension above Rs 25,000, will not qualify for assistance. Former defence personnel, however, have been exempted from this restriction.
Employees of public sector undertakings, cooperative banks and sugar factories earning more than Rs 25,000 per month are also ineligible. In addition, individuals earning substantial non-agricultural income and regularly filing income tax returns will be excluded from the scheme.
The waiver will cover crop loans taken between April 1, 2019, and March 31, 2025. Only loans that remained overdue as of September 30, 2025, and unpaid until March 31, 2026, will be considered eligible. Restructured medium-term crop loans converted from short-term agricultural loans during the same period will also be covered under the waiver.
The government has capped the waiver amount at Rs 2 lakh per farmer. For borrowers whose outstanding dues exceed this limit, a One-Time Settlement (OTS) mechanism has been introduced. Under this arrangement, farmers must first repay the amount exceeding Rs 2 lakh, after which the state will settle the remaining eligible portion up to the prescribed ceiling.
To encourage financial discipline, the government has also announced an incentive package for farmers who have consistently repaid crop loans on time. Farmers who cleared their short-term crop loans in at least two of the three financial years between 2022-23 and 2024-25 before the stipulated June 30 deadline will receive an incentive of up to Rs 50,000.
In cases where the total repaid loan amount is below Rs 50,000, the incentive will match the actual amount repaid, with a minimum benefit of Rs 5,000. Farmers who maintained regular repayment records and are eligible under the scheme may receive grants of up to Rs 50,000 as a reward for timely repayment.
The scheme does not impose any restrictions based on landholding size. Farmers who had previously benefited under the Mahatma Jyotirao Phule Loan Waiver Scheme and still have arrears of up to Rs 50,000 will also be covered.
To streamline implementation and prevent irregularities, beneficiaries will be required to undergo Aadhaar-based biometric verification and register digitally through the state's AgriStack platform. The scheme will be applicable across all institutional lenders, including nationalised banks, private banks, regional rural banks and district central cooperative banks.
Meanwhile, the state government has constituted a high-level committee headed by the Additional Chief Secretary (Finance) to engage with banks and financial institutions for resolving non-performing agricultural loan accounts and facilitating effective implementation of the waiver programme.