Maharashtra Removes Eligibility Norms for Rs 2 Lakh Farm Loan Waiver

The Maharashtra government has officially withdrawn the eligibility conditions for its farm loan waiver scheme, Chief Minister Devendra Fadnavis announced on Friday, July 10, 2026. The decision, announced during a session in the state Assembly, means that farmers with defaulted crop loans of up to Rs 2 lakh will receive a waiver without having to satisfy any of the previously proposed criteria.

Fadnavis shared the update while replying to an Opposition motion in the Assembly. He explained that the decision to scrap the eligibility rules was taken in response to direct demands and requests from state legislators.

During his address, the Chief Minister defended the initial introduction of the eligibility rules, explaining they were designed to maintain financial discipline and protect the state's banking system. He emphasized that the guidelines were not proposed because the government had any doubts regarding the farmers.

Fadnavis pointed out that repeated loan waivers can influence repayment behaviour among borrowers and potentially reduce the willingness of banks to extend future loans. However, acknowledging the strong feedback from legislators, the government chose to retract the conditions entirely.

With the eligibility barriers removed, the state government will now proceed with providing the crop loan waivers of up to Rs 2 lakh directly to the affected farmers.