The Maharashtra government has provided relief to farmers by approving the waiver of agricultural loans up to Rs 2 lakh. The cabinet meeting, chaired by Chief Minister Devendra Fadnavis, approved the ‘Punyashlok Ahilyadevi Holkar Shetkari Karjmukti Yojana.’ The state government will spend approximately Rs 36,585 crore on this scheme, and approximately 5.6 million farmers are expected to benefit. The government says that more than 6.5 million loan accounts will be covered under this scheme. In addition, special incentives will be provided to farmers who repay their loans on time.
Whose loans will be waived?
The government will waive the entire agricultural debt of farmers whose total outstanding crop loan (including principal and interest) is up to Rs 2 lakh. There are no landholding or land ownership requirements for this scheme.
Conditions required for the loan waiver
To avail the loan waiver benefit, farmers will have to fulfil these conditions-
- The farmer’s crop loan should have been taken between April 1, 2019, and March 31, 2025.
- This loan should be outstanding by 30 September 2025.
- The farmer should not have repaid that loan by March 31, 2026.
- The total outstanding amount (including principal and interest) should be up to Rs 2 lakh.
What are the rules for those with loans of more than Rs 2 lakh?
Farmers with outstanding loans exceeding Rs 2 lakh will also receive relief. Such farmers will first have to deposit the amount above Rs 2 lakh themselves. After this, they will be granted loan waiver benefits up to Rs 2 lakh.
Simply put, if a farmer has a Rs 3 lakh loan, they must first deposit Rs 1 lakh. After this, the remaining Rs 2 lakh can be waived. Farmers will have until March 31, 2027, to deposit this amount.
Those who repay their loans on time will also benefit
The government has also taken a major decision to encourage farmers who faithfully repay their loans on time. Farmers who repay their crop loans on time for at least two of the years 2022-23, 2023-24, and 2024-25 will receive an incentive of up to Rs 50,000.
For this, it will also be necessary that the farmer has repaid the crop loan taken in the current financial year on time.
Who will not get the benefit?
Farmers will not benefit from this scheme if they are.
- At any official post of a political party
- Government employee
- Pay Income Tax
- Officers and employees of cooperative institutions with monthly salaries exceeding Rs 25,000.
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