Why the waiver
Maharashtra's farming economy has been marked by repeated cycles of weather distress in Marathwada and Vidarbha, sugar-belt over-borrowing in Western Maharashtra, and cotton-belt yield volatility. By mid-2019, short-term crop loan NPAs and stressed accounts had accumulated to a level that warranted systemic relief. The Mahatma Jyotirao Phule Shetkari Karjmukti Yojana (MJPSKY) — named after the 19th-century social reformer Mahatma Jyotirao Phule — was announced in December 2019 as a one-time waiver of short-term crop loans up to ₹2 lakh per account outstanding as on 30 September 2019.
Scope and quantum
- Quantum: up to ₹2 lakh per KCC / short-term crop loan account.
- Cut-off date: outstanding as on 30 September 2019. Loans disbursed after that date are outside the waiver scope.
- Bank coverage: PSU banks, regional rural banks (RRBs) and Maharashtra State Cooperative Bank short-term loans.
- Mode of credit: bank applies the waiver directly against the loan account; farmer notified by SMS.
Eligibility
- Maharashtra resident farmer with a KCC / short-term crop loan account outstanding as on the cut-off date.
- Single-loan account (multiple-product borrowers excluded).
- Not a serving government employee or income-tax payer.
- Not classified as wilful defaulter by the bank.
- Landholding within the ten-hectare ceiling.
How to apply — step by step
- Register on mjpsky.maharashtra.gov.in with Aadhaar, KCC passbook / loan account number, 7/12 land record and bank passbook.
- Bank submits loan-account particulars to the MJPSKY cell; state-level committee approves the list.
- Waiver credit transferred bank-to-bank and applied against the KCC / loan account. Farmer receives SMS with the waiver amount and updated balance.
- For grievance, farmer files at the lead-bank branch or via the MJPSKY portal grievance module.
Coverage statistics
Per Maharashtra Department of Cooperation, Marketing & Textiles, around 32 lakh farmer accounts benefited under the MJPSKY scheme, with total outlay of approximately ₹24,000 crore disbursed in phases between 2019 and 2022. Implementation was monitored by the State-Level Bankers' Committee (SLBC) Maharashtra and published in successive state budget statements.
Phased disbursement
Disbursement happened in two main phases:
- Phase 1 (2019-20): loans up to ₹2 lakh fully waived; bulk of beneficiaries covered.
- Phase 2 (2020-22): post- verification cohort; ineligible-list pruning; grievance redressal.
Latest changes (2024 — 2026)
- 2024-25: Residual disbursement for pending verification cases continued; post- waiver KCC re-issuance pipeline aligned with MISS subvention.
- March 2025: MahaDBT integrated with AgriStack Farmer ID for de-duplication across schemes.
- 2025-26: State-level review committee considered expanded loan-relief scope for post-2019 distress accounts; budget allocation tied to fiscal space.
Common rejection reasons
- Outside cut-off date: loans disbursed after 30 September 2019 are not covered.
- Above ₹2 lakh ceiling: waiver caps at ₹2 lakh; balance remains farmer obligation.
- Multiple loan products: farmers with parallel gold / term / personal loans on the same Aadhaar are excluded.
- Wilful default: bank-classified wilful defaulters are excluded.
- Excluded category: government employees and income-tax payers.
- Aadhaar — KCC seeding failure: account verification fails; remediate at branch.
Grievance: Lead-bank branch manager → District Lead District Manager (LDM) → State-Level Bankers' Committee (SLBC) Maharashtra → Department of Cooperation, Marketing & Textiles, Mantralaya.
How MJPSKY stacks with other schemes
MJPSKY is a one-time stress relief. For ongoing income support, farmers access PM-KISAN and Namo Shetkari (state top-up). Fresh credit flows via KCC-MISS at 4 % effective rate. Crop loss covered by PMFBY. Irrigation infrastructure assistance via Magel Tyala Shet Tale and Birsa Munda Krishi Kranti (ST farmers).
Related
- KCC at MISS — post-waiver fresh credit.
- Namo Shetkari.
- Maharashtra state guide.