Key Highlights
The Maharashtra government has approved the Punyashlok Ahilyadevi Holkar Shetkari Karja-mukti Yojana, introducing a comprehensive farm debt relief package that combines loan waivers, one-time settlement (OTS) benefits, and repayment incentives. With this announcement, Maharashtra joins the ranks of states such as Tamil Nadu and Telangana that have recently unveiled farmer debt relief measures.
Full Loan Waiver for Eligible Farmers
Under the scheme, farmers with overdue short-term crop loans up to ₹2 lakh will receive a complete waiver of the outstanding amount, including both principal and accrued interest.
Eligibility Conditions
To qualify for the waiver:
- The crop loan must have been disbursed between April 1, 2019, and March 31, 2025
- The loan should have remained overdue as of September 30, 2025
- The dues must have remained unpaid until March 31, 2026
- There is no landholding limit prescribed for eligibility
This makes the scheme accessible to a broad section of the farming community.
Relief for Farmers With Loans Above ₹2 Lakh
Farmers whose overdue crop loans exceed ₹2 lakh will not be excluded from the scheme.
One-Time Settlement (OTS) Benefit
Borrowers with outstanding dues above ₹2 lakh can avail debt relief by:
- Paying the amount exceeding ₹2 lakh
- Becoming eligible for a waiver of up to ₹2 lakh on the remaining debt
The government has fixed March 31, 2027 as the deadline for making the required payment under the OTS mechanism.
Additional Grant Provision
Another benefit under the scheme allows farmers with overdue loans exceeding ₹50,000 to receive a ₹50,000 grant after clearing the remaining outstanding amount.
Incentives for Timely Loan Repayment
The Maharashtra government has also included rewards for farmers who have maintained repayment discipline.
Incentive Grant
Farmers may receive an incentive of up to ₹50,000 if:
- They repaid crop loans on time in at least two out of three financial years between FY23 and FY25
- They continue to repay current crop loans within the prescribed timelines
This component aims to encourage responsible borrowing and timely repayments.
Banks Covered Under the Scheme
The debt relief programme will apply to crop loans obtained from:
- Public sector banks
- Private sector banks
- Regional rural banks
- District central cooperative banks
- Primary Agricultural Credit Societies (PACS)
The broad coverage ensures that farmers borrowing from different banking channels can participate.
Aadhaar and AgriStack Registration Mandatory
To ensure transparency and proper beneficiary identification:
- Aadhaar authentication will be compulsory
- Farmers must be registered on the AgriStack platform
- A dedicated online portal will be launched for implementation and monitoring
A high-level committee headed by the Chief Secretary will oversee the execution of the programme.
Why This Scheme Matters
The new debt relief package seeks to balance three objectives:
1. Immediate Relief
Provides direct financial support to farmers struggling with overdue crop loans.
2. Settlement Support
Offers a structured mechanism for borrowers with larger debts through the OTS framework.
3. Credit Discipline
Rewards farmers who have maintained a good repayment track record through incentive grants.
Conclusion
The Punyashlok Ahilyadevi Holkar Shetkari Karja-mukti Yojana introduces a multi-layered approach to agricultural debt relief in Maharashtra. Farmers with overdue crop loans up to ₹2 lakh can receive a complete waiver, while those with larger liabilities can benefit through the one-time settlement mechanism. In addition, repayment-linked incentives are designed to encourage financial discipline and improve access to future agricultural credit. The scheme is expected to provide significant support to eligible farmers across the state while strengthening the rural credit ecosystem.
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