One Time Settlement Scheme 2025-26: Rs 44 Crore Interest Waived for 3,410 Rajasthan Farmers


By Robin Kumar Attri

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Rajasthan farmers get ₹44 crore interest waiver under OTS Scheme 2025-26. Know how to apply and benefit.

Key Highlights:

The Rajasthan government has launched the Mukhyamantri Overdue Interest Relief One Time Settlement Scheme 2025-26 to give much-needed relief to farmers from overdue agricultural loans. Under this scheme, interest worth ₹44 crore has been waived for over 3,400 farmers in the state.

Also Read: Government Launches Kisan Drone Yojana 2025 to Boost Smart Farming

Scheme Aims to Help Small and Marginal Farmers

To improve agricultural productivity and provide easy access to low-interest short-term loans, the government has continued the Modified Interest Subvention Scheme (MISS) for the year 2025-26. Along with this, the new One Time Settlement (OTS) scheme is being implemented to support farmers affected by natural disasters and financial stress.

This special scheme not only helps land development bank loanees but also benefits small entrepreneurs.

3,410 Farmers Already Benefitted

State Cooperative Minister Gautam Kumar Dak informed that 3,410 indebted farmers have deposited ₹33 crore as principal, and in return, the state has waived ₹44 crore of interest. The scheme targets 30,010 loanee members of 36 Primary Cooperative Land Development Banks across Rajasthan.

If all eligible members repay the ₹326 crore principal, they will collectively receive ₹534 crore in total interest waiver.

100% Interest Rebate on Principal Payment

Under this scheme, farmers who pay the full principal amount of their overdue loan are granted 100% rebate on interest. This initiative has already brought major relief to some large defaulters.

A notable example is the Baljeet Mev family from Titpuri village in Kathumar Tehsil (Alwar). They paid ₹18.61 lakh principal, and the government waived ₹37.23 lakh interest, closing an overdue account of ₹55.84 lakh.

Farmers Getting Back Their Land

The minister added that due to wide publicity, many eligible farmers are now aware of the scheme and are coming forward to repay their dues. He also explained that, in earlier cases, when loans were unpaid and no buyer was found during auctions, the banks would register the land in their name under Section 103 of the Rajasthan Cooperative Societies Act, 2001.

Now, with the OTS scheme in place, such farmers are settling their loans, and ownership of land is being returned to them, helping them restore their livelihoods.

What is the One Time Settlement Scheme?

The One Time Settlement Scheme 2025-26 is a key initiative by the Rajasthan government. It is especially for farmers who have defaulted on their agricultural loans. Every year, the scheme is launched at the start of the financial year to waive 100% of the interest for overdue members of Land Development Banks.

To benefit from the scheme:

This scheme is expected to benefit 2.19 lakh farmers who have taken ₹778 crore in loans for the Kharif 2024 season. Farmers who borrowed through PACS/LAMPS from Central Cooperative Banks will also be able to clear their loans by paying only the principal.

Also Read: Khet Talab Yojana 2025: Big Subsidy for Farm Pond Construction and Pump Set Installation

CMV360 Says

The Mukhyamantri One Time Settlement Scheme 2025-26 is a major step towards reducing the debt burden of small and marginal farmers in Rajasthan. With full interest waivers on repayment of principal, it gives farmers a fair chance to recover financially and reclaim ownership of their land. This initiative reflects the government’s commitment to supporting agricultural growth and farmer welfare.