Maharashtra CM Approves Rs 2 Lakh Farm Loan Waiver Ahead Of Monsoon, 56 Lakh Farmers To Benefit

However, sources said the government has not made an official announcement due to the code of conduct currently in force for the Legislative Council elections.

The Chief Minister also directed nationalised banks to ensure achievement of at least 80 per cent of their agricultural loan disbursement targets.

Source : ABP

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Key points generated by AI, verified by newsroom

• Maharashtra cabinet approved farm loan waiver up to Rs 2 lakh.
• Scheme benefits 5.6 million farmers, total waiver Rs 36,585 crore.
• Incentives offered to farmers repaying agricultural loans regularly.

In a major relief for farmers, the Maharashtra cabinet on Tuesday (June 2) approved a farm loan waiver of up to Rs 2 lakh.

The decision, taken by the Devendra Fadnavis-led government ahead of the monsoon season, is expected to benefit 5.6 million farmers across the state.

The total loan waiver amount stands at Rs 36,585 crore.

However, sources said the government has not made an official announcement due to the code of conduct currently in force for the Legislative Council elections.

Over 65 Lakh Loan Accounts To Be Covered

The decision was taken during a cabinet meeting chaired by Chief Minister Devendra Fadnavis.

Farm loan waivers were among the key promises made by the BJP-led “Mahayuti” alliance ahead of the 2024 assembly elections.

According to sources, more than 65 lakh loan accounts will be covered under the scheme.

Agricultural loans worth Rs 36,585 crore for around 5.6 million farmers are expected to be waived.

The cabinet also decided to provide incentives of up to Rs 50,000 to farmers who regularly repay their agricultural loans.

Fadnavis Had Promised Rollout Before June 30

On May 21, after reviewing preparations for the Kharif season and holding meetings with the State-Level Bankers’ Committee, Chief Minister Devendra Fadnavis had announced that all eligible farmers would receive their loan waivers before June 30.

He had stated that timely implementation of the scheme would enable farmers to obtain fresh loans for the upcoming agricultural season.

The Chief Minister also directed nationalised banks to ensure achievement of at least 80 per cent of their agricultural loan disbursement targets.

Earlier Delay Had Created Confusion

The state government had previously announced a farm loan waiver scheme, but the absence of a clear implementation timeline had created confusion among farmers and banking institutions.

With the latest cabinet approval, the government is expected to move ahead with implementation once the election-related code of conduct is lifted.