Maharashtra govt releases ₹4,000 crore for farmers’ loan waiver scheme

The Maharashtra government has approved the release of ₹4,000 crore for the Punyashlok Ahilyadevi Holkar Farmers' Loan Waiver Scheme, 2026, paving the way for the transfer of financial benefits to eligible borrowers’ bank accounts.

The decision was communicated through a Government Resolution (GR) issued by the state’s Cooperation Department. According to the GR, ₹6,551 crore was available under the relevant budget head for the scheme, of which the government has now approved the release of ₹4,000 crore.

The latest allocation follows a proposal submitted by the Commissioner and Registrar of Cooperative Societies on October 21, seeking funds to transfer the benefits to eligible loan accounts.

The release is expected to provide the cooperative societies administration with additional funds to process eligible accounts and undertake the transfer of financial assistance. The allocation also takes the total amount made available under the scheme closer to the overall budgetary provision approved for FY27.

Maharashtra had earmarked ₹20,552 crore for FY27

The scheme was approved by the state Cabinet on June 2, 2026. For the financial year 2026-27, the Maharashtra government had approved a total provision of ₹20,552 crore through supplementary demands for grants.

Of this, ₹14,001 crore had already been made available to the Commissioner and Registrar of Cooperative Societies through earlier government resolutions.

With the latest approval of ₹4,000 crore, the total funds released or made available for the scheme rise to ₹18,001 crore, based on the allocations detailed in the GR. This leaves ₹2,551 crore of the approved FY27 provision yet to be made available.

Funds to be transferred to eligible loan accounts

The latest release is intended to facilitate the transfer of financial assistance directly into the bank accounts of eligible borrowers. The Cooperation Department’s GR specifies that the funds will be used for crediting benefits to qualifying loan accounts.

The allocation marks another step in the implementation of the state’s farm loan waiver programme, which was cleared by the Cabinet earlier this year.

The GR details the budgetary provision, the amount released and the proposal submitted by the cooperative societies administration. It does not specify the number of farmers expected to benefit or the individual loan waiver limits under the scheme.