Maharashtra cabinet on Tuesday (June 2, 2026) approved a farm loan waiver scheme- ‘Punyashlok Ahilyadevi Holkar Shetkari Karjamukti Yojana’, covering agricultural loans of up to ₹2 lakh. The scheme will benefit around 56 lakh farmers, waiving ₹36,585 crores of loans. Before the Cabinet meeting on Tuesday (June 2, 2026), Maharashtra Chief Minister Devendra Fadnavis told reporters that the scheme would be finalised in the Cabinet, but that an official announcement cannot be made due to the model code of conduct.

The scheme includes three components- loan waiver, one-time settlement, and incentive benefits. It means that farmers having loans up to ₹2 lakh or less will get a complete loan waiver, farmers having more than ₹2 lakh loans will get a grace period to pay the outstanding amount before March 31, 2027, along with a deposit in their accounts, and farmers who paid EMIs regularly will receive an incentive of ₹50,000.

The loan period should be from April 1, 2019, to March 31, 2025. Farmers, whose loans outstanding as on September 30, 2025, and continue to remain unpaid as on March 31, 2026, up to a maximum of ₹2,00,000, will be given a loan waiver irrespective of the area of ​​land holding. 

For farmers having a loan of more than ₹2,00,000, first need to repay the outstanding before March 31, 2027, then only they will become eligible to receive the loan waiver of ₹2 lakh. 

Under incentive benefits, the incentives will be given to those farmers who have taken crop loans in any two of the three financial years 2022-23, 2023-24 and 2024-25 and have repaid the loan before June 30 after the end of the financial year or within the time limit as per the bank’s rules. 

A high-level committee chaired by the Chief Secretary of the State will monitor the implementation of the scheme. A committee comprising the Principal Secretary (Cooperation), Managing Director (Maha-IT), Administrator Maharashtra State Cooperative Bank, Convenor, State-Level Bankers’ Committee (SLBC), Commissioner for Cooperation, and Registrar of Cooperative Societies, to negotiate with the banks and determine the proportion of such concessions. 

The scheme will apply to loans obtained from nationalised banks, private banks, Regional Rural Banks (RRBs), and District Central Cooperative Banks (DCCBs). 

Political office bearers, government employees, income tax eligible persons, officers and employees of cooperative societies with a salary of more than ₹25,000 will not be eligible for this scheme.