Maharashtra Farm Loan Waiver Expanded: CM Devendra Fadnavis Removes ₹2 Lakh Loan Ceiling, Announces ₹36,000 Crore Relief Package

State Government Broadens Eligibility to Cover More Farmers and Extend Overdue Loan Cut-Off Until FY 2026-27

The Maharashtra government has announced one of its biggest farm debt relief measures in recent years by expanding the state's farm loan waiver scheme. Chief Minister Devendra Fadnavis revealed that the government has removed the earlier ₹2 lakh outstanding loan ceiling, significantly increasing the number of eligible beneficiaries across the state.

The revised policy, announced during the Maharashtra Legislative Assembly session, is expected to benefit nearly 56 lakh farmers with financial assistance worth around ₹36,000 crore. The decision also extends eligibility to include overdue agricultural loans up to the 2026-27 financial year, allowing thousands of additional farmers to qualify for relief.

Major Changes Introduced Under Maharashtra's Revised Farm Loan Waiver Scheme

The state government has made several important changes to strengthen the newly announced Punyashlok Ahilyadevi Holkar Farm Loan Waiver Scheme.

The biggest reform is the removal of the previous ₹2 lakh outstanding loan limit. Earlier, farmers whose overdue loans exceeded ₹2 lakh—even by a small amount—were excluded from receiving benefits. With this restriction removed, a much larger section of indebted farmers can now qualify for assistance.

The government has also extended the eligibility period. Earlier proposals covered overdue loans only until the 2025-26 financial year. The revised policy now includes loans that remain overdue through the 2026-27 financial year, giving additional relief to farmers facing prolonged financial difficulties.

Nearly 56 Lakh Farmers Expected To Receive Financial Relief

According to Chief Minister Devendra Fadnavis, the expanded scheme will support around 56 lakh farmers, making it one of Maharashtra's largest agricultural relief programs.

The government estimates that approximately ₹36,000 crore will be spent under the revised loan waiver package. Officials believe the expanded coverage will help more farmers regain access to institutional banking services while reducing their dependence on private moneylenders.

The announcement comes at a time when rising production costs, unpredictable weather, and fluctuating crop prices continue to put financial pressure on farmers across Maharashtra.

Government Says Loan Waiver Is Meant To Restore Access to Formal Credit

While announcing the revised scheme, Chief Minister Fadnavis emphasized that the government's goal is not to encourage repeated debt waivers but to help financially stressed farmers return to the formal banking system.

He said many farmers who become loan defaulters eventually lose access to bank credit and are forced to borrow from private lenders at much higher interest rates. By clearing outstanding agricultural loans, the government hopes to improve farmers' financial stability and strengthen rural credit availability.

The Chief Minister also responded to criticism from opposition leaders regarding the expected financial outlay, stating that the state has already planned assistance worth nearly ₹36,000 crore, significantly higher than estimates suggested during the Assembly debate.

Previous Beneficiaries Also Included Under Revised Policy

The Maharashtra government has also expanded eligibility for farmers who had already received benefits under the earlier Mahatma Jyotirao Phule Farmer Loan Waiver Scheme.

Previously, the older scheme had imposed strict eligibility rules, including a ₹2 lakh loan limit that excluded many farmers whose dues exceeded the threshold by even a small amount. Around 32 lakh farmers benefited from that program.

Under the revised policy, eligible beneficiaries from the earlier scheme can also receive loan waiver benefits of up to ₹2 lakh, providing additional financial support to families still struggling with agricultural debt.

Agriculture Support Beyond Loan Waivers

The state government highlighted that the farm loan waiver is only one part of its broader agricultural support strategy.

According to the Chief Minister, Maharashtra provides nearly ₹25,000 crore annually as electricity subsidies for farmers. When combined with irrigation support, crop assistance, insurance programs, and other agricultural initiatives, the state's annual support for the agriculture sector reaches nearly ₹95,000 crore.

The government said these measures are intended to improve farm productivity while reducing the financial burden on rural households.

Implementation Planned Over Multiple Years

Officials said the expanded farm loan waiver will be implemented in phases to ensure smooth execution and maintain fiscal stability.

The state plans to spend approximately:

• ₹20,000 crore during the first year
• ₹22,000 crore in the second year
• ₹25,000 crore in the following year as part of its broader agricultural support initiatives.

The phased approach has reportedly been finalized after consultations with banks and financial institutions to ensure the scheme can be implemented efficiently without disrupting the rural credit system.

Maharashtra Continues Large-Scale Farm Debt Relief Efforts

With the latest announcement, Maharashtra continues its history of implementing large-scale agricultural debt relief programs. Successive loan waiver initiatives introduced in 2017, 2020, and now 2026 reflect the state's continued efforts to address financial stress in the farming sector.

Agriculture remains a major contributor to Maharashtra's economy, and the expanded loan waiver is expected to provide immediate financial relief while helping farmers regain access to formal credit channels. As implementation begins, the revised scheme is likely to play a significant role in supporting rural livelihoods and strengthening the state's agricultural economy.