Punjab Crop Loan Waiver Scheme for Marginal & Small Farmers

Why it matters

Wipes out a portion of outstanding crop loan debt for the smallest farmers, giving them a fresh start instead of an ever-growing burden of unpaid interest.

What you get

This debt-relief scheme is targeted at marginal farmers (holding less than 2.5 acres) and small farmers (holding between 2.5 and 5 acres) struggling with outstanding institutional crop loans. Marginal farmers are eligible for debt relief of up to Rs 2 lakh, while the scheme also provides for waiving the entire outstanding interest component on qualifying loans, distinct from the principal. The scheme was designed to lessen the debt burden specifically on the smallest landholding categories, who are disproportionately vulnerable to debt-driven distress, with over 10.25 lakh marginal and small farmers identified as scheme beneficiaries across the state.

Eligibility criteria

• Marginal farmer (landholding less than 2.5 acres) or small farmer (landholding 2.5 to 5 acres) in Punjab
• Outstanding institutional crop loan as of the scheme cut-off date
• Loan account in good standing per scheme eligibility rules

How to apply

1. 1

   Verify eligibility through the lending bank or District Agriculture Office

2. 2

   Loan account cross-checked against land records for landholding category

3. 3

   Eligible debt/interest amount waived and reflected in the loan account

Documents required

• Land record showing landholding size
• Bank loan account statement
• Aadhaar card