Maharashtra Unveils Record‑Breaking Loan Waiver: Caps Set at ₹2 Lakh

In a move that caught the attention of both policymakers and the agrarian community, Maharashtra’s chief minister Devendra Fadnavis declared on Wednesday the state’s largest ever loan‑waiver scheme. The ceiling, which previously hovered around ₹1.5 lakh, has now been bumped up to ₹2 lakh per borrower.

Speaking at a modest press conference in Mumbai, Fadnavis explained that the decision came after months of consultations with farmer unions, banking officials, and financial experts. “Our farmers are the backbone of this state,” he said, pausing for effect, “and we cannot let debt become a chain that binds them forever.” He added that the waiver would cover short‑term crop loans, micro‑credit, and certain personal loans taken for agricultural purposes.

The announcement arrived just weeks after the central government rolled out a national farm‑loan waiver. While the Union scheme set a uniform limit of ₹2 lakh, Maharashtra’s version distinguishes itself by targeting small‑scale borrowers who have been left out of the broader safety net. Officials claim that roughly 4 million families could benefit, potentially clearing a backlog of about ₹12,000 crore in pending dues.

Reactions have been mixed, as is often the case with large‑scale debt relief. Farmer leaders applauded the gesture, noting that “every rupee saved can be planted again,” while some opposition voices warned of fiscal strain. “We need to balance compassion with prudence,” said a senior member of the state legislature, hinting at concerns over the impact on the state’s budget.

Banking houses, too, are watching closely. A senior manager at a major public sector bank in Pune remarked that the waiver could help improve credit‑culture in rural pockets, though he cautioned that “long‑term solutions must involve better insurance and market access, not just one‑off bailouts.”

Regardless of the debates, the waiver is set to take effect from the first of August. Eligible borrowers will need to submit proof of loan details, agricultural income, and identity documents through a newly launched online portal. The state has also promised a help‑desk to assist those unfamiliar with digital procedures.