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Maharashtra Sets June 30 Deadline for Farm Loan Waiver and Bars CIBIL Checks on Crop Loans

The announcement seeks to end farmer uncertainty by unlocking fresh kharif loans through direct state action and banking orders.

Overview

  • Chief Minister Devendra Fadnavis told a press conference on Thursday that the state will complete the farm loan waiver for all eligible farmers by June 30 to clear the way for kharif-season credit.
  • The government ordered nationalised banks to meet at least 80 percent of crop-loan disbursal targets and explicitly banned using CIBIL scores to deny agricultural loans, with Reserve Bank of India officials present at the meeting.
  • Fadnavis said farmers who receive the waiver will remain eligible for the next crop-loan cycle, a move intended to ensure they can obtain fresh credit for sowing.
  • Facing forecasts of below-normal rainfall linked to possible El Niño conditions, Maharashtra has sped up Jalyukt Shivar water-conservation works, launched the Mahavistar AI crop-advice app, and ordered videography and tighter monitoring to curb fertiliser diversion.
  • Local enforcement tensions continued this week when Mumbai police arrested 16 people after clashes at a Bandra East anti-encroachment drive; the waiver deadline follows weeks of uncertainty that had left farmers and banks unclear about timing and could materially affect credit flows ahead of the sowing window.