Historic ₹35,000 Crore Debt Relief: Maharashtra Unveils 'Ahilyadevi Holkar' Loan Waiver in 2026 Budget

Maharashtra Chief Minister and Finance Minister Devendra Fadnavis, while presenting the budget for the year 2026-27, has made a significant announcement for the state's farmers. Under the "Punyashlok Ahilyadevi Holkar Farmer Loan Waiver Scheme 2026," the government has decided to clear the debt records (7/12 extract) of lakhs of farmers. The government has allocated approximately ₹35,000 crore for this scheme, aiming to provide justice to both defaulters and regular payers.

Detailed Criteria for Loan Waiver (For Defaulters):

For farmers who took crop loans but were unable to repay them due to various reasons, the following eligibility criteria have been set:

• Loan Limit: Principal and interest up to a maximum of ₹2 lakh per farmer will be waived.

• Cut-off Date: Only farmers whose loans are overdue as of September 30, 2025, will benefit from this scheme.

• No Landholding Limit: There is no restriction on land size this time, allowing both small-scale and large-scale farmers to benefit.

• Aadhaar Linking: It is mandatory for farmers' bank accounts to be linked with Aadhaar to receive the benefits.

Incentive of ₹50,000 for Regular Payers:

To ensure fairness toward farmers who repay their loans on time, the government has introduced a special incentive:

• Incentive Amount: Farmers who repay loans regularly will receive a subsidy of up to ₹50,000 directly into their bank accounts.

• Beneficiaries: Approximately 20 lakh regular borrower farmers in the state will benefit from this decision.

Free Electricity and Other Key Provisions:

Along with the loan waiver, several other important decisions were made to reduce the cost of agricultural production:

• Free Electricity: An allocation of ₹20,000 crore has been made to provide free electricity to farmers using agricultural pumps up to 7.5 HP.

• Natural Farming: A target has been set to bring 5 lakh hectares of land under natural farming over the next two years.

• Insurance Cover: Social security in rural areas has been enhanced by providing agricultural laborers with cover under the Gopinath Munde Accident Insurance Scheme.

Implementation and Transparency:

The government will use the 'Agristack' digital platform to implement this scheme with high transparency. Every farmer will be assigned a Unique ID, ensuring funds are deposited directly into beneficiaries' accounts without middlemen. The implementation process has begun, with a target to provide benefits to all eligible farmers by June 30, 2026.