The central government has made an important and reassuring decision for the farmers who have suffered significant losses due to heavy rains and unseasonal rainfall in Maharashtra. The center has approved the restructuring of overdue loans for as many as 1.729 million farmers in the state. Under this, a total of 266.5877 billion rupees of loans will be restructured, providing substantial support to the farmers in distress.
According to this decision, farmers in various districts of Maharashtra who have suffered crop losses due to heavy rains, floods, and unseasonal rains will be eligible for loan account restructuring. Verification of all related accounts has been completed, and the relevant information has been submitted by member banks to the Maharashtra State Level Bankers' Committee (SLBC). Therefore, the restructuring process is likely to commence soon.
Benefit of Interest Subsidy
The central government has clarified that under the revised interest subsidy scheme, a concessional interest rate will be applicable on the restructured loan amount for the first year. However, from the second year onwards, the normal interest rate of banks will be charged on these loans. This will provide financial relief to farmers initially and give them time to rebuild their agriculture.
Stay on Loan Recovery
In many districts, crops have been completely destroyed due to heavy rains, putting farmers in financial distress. This decision has been made after the state's MPs brought this serious situation to the attention of the central government. The central government has given clear instructions that no pressure should be exerted for loan recovery from affected farmers during the restructuring process. The temporary stay on loan recovery will reduce the mental and financial stress on farmers.
Natural Disaster Notification
The Government of Maharashtra issued a letter declaring a natural disaster in the state on November 26, 2025. Based on this, Maharashtra SLBC has instructed all banks in the state to act according to RBI guidelines. It has been made mandatory to restructure eligible crop loans and defer loan recovery from flood-affected farmers. It is believed that this decision will provide significant relief to farmers facing difficulties due to the natural disaster and will help the agricultural sector to recover.