Maharashtra ₹36,585 crore farm loan waiver: MPs, taxpayers excluded
Synopsis
Maharashtra's ₹36,585 crore farm loan waiver isn't a blanket giveaway. With ministers, MPs, taxpayers and ₹25,000-plus salaried employees ring-fenced out, the Cabinet has built a means-tested filter on top of a 55.72 lakh-farmer relief plan — and tied disbursement to Aadhaar biometrics and the Agri Stack platform.
Key Takeaways
Maharashtra Cabinet cleared the ₹36,585 crore Punyashlok Ahilyadevi Holkar farm loan waiver covering 55.72 lakh farmers .
Current and former Ministers, MPs, MLAs, MLCs , income-tax filers and government employees earning above ₹25,000 a month are excluded.
Waiver applies to crop loans taken between 1 April 2019 and 31 March 2025 , overdue as of 30 September 2025 .
Write-off capped at ₹2 lakh per farmer; excess to be cleared via a One Time Settlement (OTS) .
Regular repayers can earn up to ₹50,000 as incentive; disbursement mandates Aadhaar biometric and Agri Stack registration.
The decision is expected to clean Satbara land records of nearly 16.74 lakh farmers .
The Maharashtra government on 3 June 2025 imposed strict eligibility filters on its ₹36,585 crore Punyashlok Ahilyadevi Holkar farm loan waiver scheme, barring sitting and former Ministers, MPs, MLAs, MLCs, income-tax payers and high-salaried government staff from claiming benefits. The scheme, cleared by the state Cabinet, is set to provide relief to 55.72 lakh farmers and is expected to fully clean the land records (Satbara) of nearly 16.74 lakh farmers.
Who is excluded from the scheme
According to the Cabinet decision, current or former Ministers, MPs, MLAs, MLCs and office-bearers of local government bodies will not be eligible. All serving and retired Central and State Government employees drawing a gross monthly salary or pension above ₹25,000 are also excluded, with the lone exception of former military personnel.
The cut-off applies equally to employees of Public Sector Undertakings (PSUs), cooperative banks and sugar factories earning more than ₹25,000 a month. Individuals with non-agricultural income who file regular Income Tax returns have also been kept out of the beneficiary pool.
Eligibility window and loan coverage
The waiver covers crop loans availed between 1 April 2019 and 31 March 2025. Loans that turned overdue as of 30 September 2025 and remained unpaid till 31 March 2026 will qualify under the relief framework.
Medium-term restructured crop loans that originated as short-term loans during the 2019–2024 window, and which slipped into default by 30 September 2025, are also folded into the ₹2 lakh write-off ceiling.
One Time Settlement for larger loans
For farmers whose total outstanding principal and interest exceed ₹2 lakh, the government has formalised a One Time Settlement (OTS) mechanism. Under the protocol, the borrower must first deposit the amount above ₹2 lakh with the lending bank, after which the state will release its ₹2 lakh contribution.
There will be no land-holding cap on eligibility. Farmers who previously benefited under the Mahatma Jyotirao Phule farm loan waiver scheme and still carry arrears of up to ₹50,000 will also be covered.
Incentives for regular repayers
Farmers who cleared short-term crop loans on time in any two of the three financial years — FY 2022–23, FY 2023–24 and FY 2024–25 — before the 30 June deadline of the respective year, will receive an incentive of up to ₹50,000. For regular compliance cases where the loan component is below ₹50,000, the benefit will match the actual principal and interest repaid, with a floor of ₹5,000.
Disbursement and oversight
Disbursement will require mandatory Aadhaar biometric verification and digital registration on the state's 'Agri Stack' platform. The scheme applies across Nationalised Banks, Private Sector Banks, Regional Rural Banks and District Central Cooperative Banks.
A high-level committee headed by the Additional Chief Secretary (Finance) has been tasked with negotiating direct reductions and settlement frameworks with banking consortiums for Non-Performing Asset (NPA) crop loan balances. The fine print signals a sharper, means-tested approach than earlier blanket waivers in the state.
Point of View
Taxpayers and ₹25,000-plus earners, the Cabinet pre-empts the standard critique that farm waivers leak to non-distressed households — a charge that dogged both the 2017 Fadnavis and 2019 Thackeray waivers. The real test, however, is the ₹2 lakh cap and the OTS clause: farmers with larger defaults must front-load their own contribution before the state pays, which could leave the most indebted — typically dryland cultivators in Marathwada and Vidarbha — least relieved. Tying disbursement to Aadhaar and Agri Stack is the right plumbing; whether cooperative banks comply on time is where past waivers have historically unravelled.
NationPress
10 Aug 2026
Frequently Asked Questions
What is the Punyashlok Ahilyadevi Holkar farm loan waiver scheme?
It is a ₹36,585 crore crop loan waiver scheme cleared by the Maharashtra Cabinet to benefit 55.72 lakh farmers in the state. It writes off crop loans up to ₹2 lakh availed between 1 April 2019 and 31 March 2025, and is expected to clear Satbara land records of nearly 16.74 lakh farmers.
Who is not eligible for the Maharashtra farm loan waiver?
Current and former Ministers, MPs, MLAs, MLCs, leaders of local government bodies, and income-tax filers with non-agricultural income are excluded. Government, PSU, cooperative bank and sugar factory employees drawing a gross monthly salary or pension above ₹25,000 are also barred, with the sole exception of former military personnel.
What is the One Time Settlement clause for larger loans?
Farmers whose outstanding loan exceeds ₹2 lakh must first deposit the amount above ₹2 lakh with their lending bank. Once that is paid, the Maharashtra government will release its ₹2 lakh contribution to settle the account.
What incentives do farmers who repaid loans on time get?
Farmers who repaid short-term crop loans on time in any two of the three financial years between FY 2022–23 and FY 2024–25 — before the 30 June deadline of each year — will receive an incentive of up to ₹50,000. For loans below ₹50,000, the benefit matches the actual repayment with a minimum floor of ₹5,000.
Which banks are covered under the scheme?
The waiver applies universally across Nationalised Banks, Private Sector Banks, Regional Rural Banks and District Central Cooperative Banks. Disbursement is contingent on Aadhaar biometric verification and registration on the state's Agri Stack platform.
