Punjab Debt Waiver Scheme 2021 | Farm Loan Relief Upto Rs. 2 Lakh to Small / Marginal Farmers (All Phases)

Punjab Debt Waiver Scheme


Key Features

  • Objective of the Scheme:In this program the state will waive off farm loans up to Rs. 2 Lac for the small and marginal farmers. After proper verification and documentation the method will be started.
  • Empowering farmers:This program will empower the farmers as now they will be able to get freed from loan burden. Also micro, small, and medium farmers will be able to progress more with the yojana.
  • Debt Relief Certificate:Under this program, the beneficiaries will get Debt Relief document on the launching day. More than 47, 000 farmers are permitted and will get DRC on the day.
  • Banks under the program:There are many banks such as rural and urban cooperative banks, private and public banks are enlisted under this program. Loans taken from such banks will be rejected off by the state government.
  • Beneficiaries: Over 5.63 Lac farmers are being regarded by the state government as the beneficiaries of the program. All of them are tiny farmers and getting loan of Rs. 2700 Cr from 701 banks.
  • Phases:There are four phases in total under the program. In the initial phase, farmers who have receive loans from Agricultural cooperative banks will be able to get the documents.
  • Districts:In the initial phase there will be 5 districts that will be supported. The first phase will be executed in Mans first.

Required Documents

  • Domicile Proof:The farmers will have to present residential proof or domicile proof that he is a Punjab state citizen. As only the inhabitants of the punjab will be able to get the profits. As this document is compulsory to submit.
  • Bank and loan documents:Banks documents and account details supporting the beneficiaries’ loan are needed to submit to get the advantage of the program.
  • Identification proof / Aadhaar Card:Aadhaar Card is significant to submit for the program. Also the farmer supposed to link its aadhaar number with his bank account. If its not done, it will be done through manual method.


The budget assigned for the debt relief certificate is Rs. 167.39 Cr. This is the budget for the documentation of 44000 farmers in the initial phase. Budget for the another phases will be announced later.

Salient Features of Scheme 1st Phase

  • In June 2017, government had made an statement that marginals and tiny farmers will receive farm loan exemption up to Rs 2 lakh.
  • So, the notion of Punjab Debt Waiver program was coined where state govt. had to waive off loans of up to Rs. 2 lakh of marginal and small farmers in the state.
  • Under this scheme, it was announced that government will waive the loans of all small farmers having land holdings between 2.5-5 acres and the marginal farmers having land holdings of less than 2.5 acres
  • Scheme amount is to be released in 4 phases.
  • The complete debt relief amount is Rs. 9500 crore.
  • The complete number of beneficiaries are to be 10.25 lakh.
  • Government began farmer debt relief program from Mansa district to give up crop loans of upto Rs. 2 lakh per farmer.
  • All the small farmers having less than 2.5 acres of land got a debt relaxation of Rs 2 lakh.
  • Tiny farmers having land holding between 2.5 to 5 acres are also supported and get debt relaxation of up to Rs 2 lakhs.
  • First installment of crop loan waiver program is of Rs. 2700 crore.
  • Total beneficiaries in 1st phase of Scheme are 5.63 lakh.
  • In the 1st phase, the state govt. is waiving off cooperative bank loans of 3.18 lakh small farmers of Mansa, Faridkot, Bathinda, Moga and Muktsar districts amounting to a total sum of Rs. 1,815 crore.
  • The loan amount comprising of interest and principle as on 31st March 2017 was supported.
  • First installment is available for the farmers assisting loans from the co-operative banks.
  • Farmers having debt in the nationalized banks are not supported in initial phase.
  • Moreover, farmers who have benefit loans from the private and commercial banks will get settled in the next phase.

Highlights of Scheme (1st Phase) – Quick Facts

  • The state govt. is going to provide debt waiver documents to the selected beneficiaries in the initial phase. There are 4 phases to complete the complete method of Karj Mafi.
  • The total number of farming households in the Punjab are 17.5 lakhs. Out of these, government will support around 10.25 lakh families in this Scheme.
  • Punjab state government main concentration is to fulfil its pre-election promise of waiving off loans of the farmers. However, there are around 20.22 lakh bank accounts of farmers of Punjab whose whole crop loan of approximately around Rs 59,621 crore as on 31 March 2017 must be brush aside (this information is collected from State Level Bankers Committee).
  • Government will pay only rs 2 lakh to the marginal farmers as debt relief. For farmers having land of agriculture from 2.5 acre to or less than 5 acre are eligible for this amount but not the entire amount would be waived. Crop loan liability of total outstanding upto rs.2 lakh can be given as debt relief.
  • Instructions were given by state govt. to the banks for one time settlement for the crop loan waiver program. Total amount of loan for the crop will be dispursed by the bank in phase wise manner except the cooperative credit institutions.
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