India, June 3 -- The state cabinet has approved a loan waiver amounting to Rs.36,585 crore, benefitting 5.57 million farmers across Maharashtra. Under the scheme, the Punyashlok Ahilyadevi Holkar Shetkari Karjmukti Yojana 2026, agricultural loans of up to Rs.2 lakh will be waived until September 30, 2025. In addition, an incentive of Rs.50,000 will be given to farmers who regularly repay their loan instalments. Together, this will benefit 5.57 million farmers, placing a burden of Rs.36,585 crore on the exchequer.

The loan waiver, first announced in the state budget earlier this year, was cleared on Tuesday.

The scheme consists of a waiver, a one-time settlement and an incentive. Loan amounts of up to Rs.2 lakh will be waived, regardless...