Maharashtra farm loan waiver: Eligibility, one-time settlement, Rs 50,000 incentive

As debt-ridden farmers in Maharashtra have started applying for loan waivers under the Punyashlok Ahilyadevi Holkar Farm Loan Waiver Scheme 2026, government officials have been swamped by questions about one-time settlements, incentive benefits for regular loan repayers, eligibility, ineligibility, the application process, AgriStack registration, and grievance redress.

The farm loan waiver scheme, approved last month, is for both defaulters and those repaying loans regularly. Here are some points the government has clarified amid the confusion.

A farmer’s outstanding crop loan, including principal and interest, will be waived up to Rs 2 lakh.

A short-term crop loan taken between April 1, 2019, and March 31, 2025, which was outstanding as of September 30, 2025, and remained unpaid until March 31, 2026, is eligible for this waiver.

* If the farmer’s loan exceeds Rs 2 lakh, will they get any benefit?

Such farmers will definitely get the benefit. This is called the one-time settlement scheme. If a farmer’s loan is over Rs 2 lakh, he must first pay the amount exceeding Rs 2 lakh. Once that excess amount is deposited, the government will credit Rs 2 lakh to the farmer’s account.

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* If a farmer doesn’t immediately have the money to pay the amount over Rs 2 lakh, how much time will they get?

The government has given farmers a generous deadline until March 31, 2027, to deposit the amount above Rs 2 lakh into the bank.

* If a farmer has repaid his crop loan on time and regularly, what benefit will they get?

The government has also considered honest, regular-paying farmers. As an incentive, regular loan repayers will receive a benefit of up to Rs 50,000.

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* Which year’s loan repayment will be considered for the incentive benefit?

If a farmer took a crop loan in any two of the three years—2022-23, 2023-24, and 2024-25—and repaid it fully before June 30 or within the time prescribed by the bank, they will be eligible for the Rs 50,000 benefit. However, the farmer must also repay their 2025-26 and 2026-27 loans on time.

* If a farmer has repaid their loan regularly, but their loan was less than Rs 50,000, how much will they receive?

If a farmer’s loan was less than Rs 50,000, they will receive an incentive amount equal to the principal and interest paid, or a minimum of Rs 5,000.

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* If the farmer has received the benefit of the 2019 (Mahatma Jyotirao Phule) loan waiver scheme, will they get any benefit now?

If a farmer has a new outstanding crop loan balance (as of September 30, 2025) of up to Rs 50,000 taken between April 1, 2019, and March 31, 2025, it will be fully waived. If the outstanding balance is more than Rs 50,000, a farmer will receive the one-time settlement benefit after paying the amount exceeding Rs 50,000, with a deadline of March 31, 2027.

* Due to drought, if a farmer’s crop loan was restructured into a medium-term loan, will it get a waiver?

Yes, the outstanding instalments of restructured and re-restructured loans will also receive a loan waiver of up to Rs 2 lakh under this scheme.

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* Is there any condition regarding land ownership to get the loan waiver?

Not at all. Farmers will receive the benefits regardless of their landholding size.

* How do farmers apply for the loan waiver?

There is no need to submit a written application anywhere. This scheme is completely online. Banks will submit your information to the government portal themselves.

* What is the most important document condition to avail of the benefits of this scheme?

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Aadhaar authentication and registration on the government’s AgriStack system are mandatory.

* If a farmer is not registered on AgriStack, will their loan not be waived?

No farmer will be excluded just because their name is not on AgriStack. A special campaign will be conducted to ensure they are registered before the benefit is provided.

* Loans taken from which banks will be waived under this scheme?

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Loans taken from nationalised banks, private banks, regional rural banks, district central cooperative banks, and village-level primary agricultural credit societies will be waived.

* If a farmer has already repaid a regular loan and also has an outstanding loan, will he get both the loan waiver and the incentive benefit?

No. A farmer who receives the loan waiver benefit (up to Rs 2 lakh) will not be given the Rs 50,000 incentive.

*Who has been excluded from this scheme?

Serving and former ministers, Members of Parliament (MPs), Members of Legislative Assembly (MLAs), and members of zilla parishad/panchayat samiti/municipalities. Also, government and semi-government employees earning a salary or pension of over Rs 25,000, and people paying income tax on non-agricultural income are ineligible for this scheme.

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* Where can a farmer check if their name is on the list of eligible farmers?

The government will provide a special unique number to eligible beneficiaries. This list will be published at gram panchayat offices, Talathi offices, and on the government’s online portal.

* Will the farmer receive the loan waiver or incentive in cash or via banks?

The funds will be credited to a farmer’s loan account by the government. The government aims to deposit the funds starting from the first week of July so that farmers can take out a fresh crop loan.

* How many farmers in the state will benefit from this scheme, and how much fund has the government allocated?

About 56 lakh farmers in the state will benefit from this scheme. The government has made Rs 36,500 crore available to free farmers from the burden of debt.

* Why has this loan waiver scheme been named after Punyashlok Ahilyadevi Holkar?

This year marks the 300th birth anniversary of Punyashlok Ahilyadevi Holkar. The work she did for agriculture, irrigation, and rural development is considered exemplary and inspiring. To pay tribute to her great work, the government has named this scheme after her.

* If a farmer’s name is not on the loan waiver list or he has a grievance, where should they complain?

The government has set up a committee under each district collector. It will resolve issues such as omissions from the list, Aadhaar linking, and discrepancies in the loan amount.