The Loan Waiver Scheme 2026 became official for Maharashtra farmers on March 5–6, 2026, when Chief Minister Devendra Fadnavis announced the Punyashlok Ahilyabai Holkar Shetkari Karj Mafi Yojana as the flagship announcement of the Maharashtra Budget 2026–27. The scheme carries a total outlay of approximately ₹35,000 crore and aims to eliminate crop loans up to ₹2 lakh for every eligible farmer who held outstanding dues as of September 30, 2025. In addition to debt relief, the government introduced a ₹50,000 incentive grant for farmers who have repaid their crop loans regularly and on time.
CM Fadnavis framed this announcement as a fulfilment of the Mahayuti alliance’s core election promise from the November 2024 Maharashtra Assembly elections. He said, “The farm loan waiver is not for the banks’ benefit — it is purely for the farmers. The maximum number of farmers should take advantage of this scheme.” He further confirmed that the government wants to disburse the full benefit before the start of the Kharif season 2026, pushing the implementation timeline to move quickly.
The CM added that the government will use each farmer’s Stack ID card, linked to their Aadhaar number, to authenticate identities and directly credit waiver amounts into their bank accounts. Consolidated data from banks is still under collection, but Fadnavis said previous loan waiver records suggest approximately 50 lakh farmers across Maharashtra will receive direct benefit.
How the Scheme Works – Key Numbers at a Glance
| Category | Benefit |
| Farmers with overdue crop loans (as of Sept 30, 2025) | Waiver up to ₹2 lakh |
| Regular loan repayers (on-time borrowers) | Incentive grant of ₹50,000 |
| Total scheme outlay | ₹35,000 crore (approx.) |
| Estimated beneficiaries | ~50 lakh farmers |
| Delivery method | Direct Bank Transfer via Aadhaar-Stack ID link |
| Implementation target | Before Kharif season 2026 |
Which Farmers Qualify for the Waiver?
The Maharashtra government has not yet released the full official eligibility guidelines, as detailed implementation rules remain under preparation. However, based on the Budget announcement and CM Fadnavis’s media address, the following conditions form the core eligibility framework:
- The farmer must hold a crop loan (short-term agricultural credit) from a scheduled bank, cooperative bank, or regional rural bank
- The loan must have been outstanding or overdue as of September 30, 2025
- The farmer must hold a valid Aadhaar-linked bank account registered against agricultural land in Maharashtra
- Farmers who already received full benefit under previous state loan waiver schemes may face partial eligibility — exact rules are not publicly disclosed
For regular repayers, the eligibility for the ₹50,000 incentive grant specifically covers farmers who consistently paid crop loan installments on time and maintain a clean credit history with their lender.
The Road From October 2025 to Budget Day
The announcement did not come without political pressure. In October 2025, a delegation of farmer leaders including Bacchu Kadu of Prahar Janshakti Party, Raju Shetti, and Dr. Ajit Navale of All India Kisan Sabha met CM Fadnavis at the Sahyadri Guest House in Mumbai. Fadnavis formally committed at that meeting to announcing the waiver before June 30, 2026, and constituted a high-level nine-member committee under MITRA CEO Pravin Pardeshi to prepare the implementation framework. Farmer leaders immediately suspended a planned “Rail Roko Andolan” protest in Nagpur following that commitment.
The Pardeshi committee submitted its findings in April 2026 as scheduled, and the state government incorporated those recommendations directly into the Budget 2026–27 announcement. Congress leader Vijay Wadettiwar responded to the announcement cautiously, saying the Opposition would welcome the decision “only if it genuinely benefits farmers.”
Farmer Bodies Say It Falls Short
Despite the scale of the announcement, farmer organizations have publicly called the scheme inadequate. Multiple groups point out that the ₹2 lakh cap does not cover the actual loan burden of most distressed farmers in regions like Marathwada, Vidarbha, and North Maharashtra, where average agricultural debt exceeds ₹3–5 lakh per family. Reports suggest that farmer unions plan to continue pressing the government for a higher ceiling or a separate supplemental package for the most severely indebted districts.
What Happens Next – Timeline to Watch
The government confirmed that the full scheme guidelines, including the list of eligible banks, the loan classification criteria, and the online application process, will roll out in the coming weeks. Farmers who want to verify their eligibility should keep the following documents ready for when the portal goes live:
- Aadhaar card linked to an active bank account
- Land ownership records (7/12 or Satbara Utara)
- Loan account details from the issuing bank with outstanding balance as of September 30, 2025
- Stack ID / Shetkari ID card issued by the Maharashtra government
- Bank passbook or statement showing loan history
The state government said it would announce the official web portal for status tracking and benefit application before the start of the Kharif sowing season, which typically begins in June across Maharashtra.
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