Maharashtra Announces Rs 2 Lakh Farm Loan Waiver

Mumbai: Maharashtra Chief Minister Devendra Fadnavis on Friday announced the Punyashlok Ahilyabai HolkarLoan Waiver Scheme for farmers in the State Legislative Assembly, under which crop loans of up to Rs two lakh will be waived for eligible farmers.

Presenting the State Budget for 2026–27, Mr. Fadnavis said the scheme is aimed at providing relief to financially stressed farmers while encouraging a culture of timely loan repayment. The government will also provide an incentive of up to Rs 50,000 to farmers who have been regularly repaying their crop loans.

The loan waiver scheme is expected to cost the State exchequer about Rs 35,000 crore and benefit nearly 50 lakh farmers across Maharashtra. The loan waiver announcement in the budget came as a surprise as the government had agreed to waive off loan by June 30.

Mr. Fadnavis, who also holds the finance portfolio following the death of former Deputy Chief Minister Ajit Pawar in an aircraft crash on January 28, presented a Rs 7,69,466.87-crore budget for 2026–27 in the Assembly. The budget projects a revenue deficit of Rs 40,552.35 crore and a fiscal deficit of Rs 1,50,491.35 crore.

“We had assured the farmers that a loan waiver scheme would be implemented. Today, I announce the Punyashlok Ahilyadevi Holkar Farmer Debt Waiver Scheme, which will waive crop loans of up to Rs two lakh for eligible farmers whose loans were overdue as of September 30, 2025,” the Chief Minister said.

He said the government would also reward farmers who repay their loans on time with an incentive of up to Rs 50,000.

Speaking to reporters at Vidhan Bhavan after presenting the budget, the Chief Minister said banks had so far provided data on around 28–30 lakh farmers who had defaulted on crop loans and would be eligible for the waiver. “The government expects to receive complete data on all farmer loan accounts within the next 20 days. In addition, nearly 20 lakh farmers who have been regularly repaying their loans will be eligible for the Rs 50,000 incentive,” he said.

Mr. Fadnavis clarified that there would be no landholding limit to avail the benefits of the scheme. “Our effort is to extend the benefits to as many farmers as possible,” he said.

The government will use data from Agristack, Aadhaar numbers and linked bank accounts while implementing the scheme. According to the Chief Minister, it will take about one-and-a-half months to develop the digital architecture required for the loan waiver.

“This will help identify genuine farmers. In earlier loan waiver schemes, banks had submitted old loan accounts to claim benefits. Our loan waiver is not for banks but for farmers,” he said.

Explaining the likely expenditure, Mr. Fadnavis said about Rs 20,000 crore had earlier been spent on loan waivers, while around Rs 15,000 crore was paid during the Eknath Shinde-led government as incentives to farmers who repaid loans regularly. “Thus, the total expenditure is expected to be around Rs 35,000 crore,” he said.

The Chief Minister asserted that the State’s finances remained sound and that the government was prepared to bear the expenditure in the interest of farmers.

The BJP-led Mahayuti alliance had promised a farm loan waiver ahead of the 2024 Assembly elections. The announcement comes about 15 months after the government came to power.

However, the government has not yet increased the stipend under the Mukhyamantri Majhi Ladki Bahin Scheme (MMLBS), despite its promise to raise the monthly assistance for women from Rs 1,500 to Rs 2,100. Deputy Chief Minister Eknath Shinde said the decision to increase the stipend would be taken at an “appropriate time”.Mr. Fadnavis, however, asserted that the scheme would continue.

Dedicating the budget to the memory of late Ajit Pawar, the Chief Minister announced that a grand memorial would be built in his honour. He also announced the institution of a “Dynamic Civil Service Award” in Ajit Pawar’s name.

According to the budget document, Maharashtra’s debt stock is projected to reach Rs 11,02,654 crore in 2026–27 — the highest level in the past decade. However, the Chief Minister said the borrowing remained within the prescribed debt-to-GSDP ratio.