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Farmers in Rajasthan can settle overdue loans with full interest waiver till 30 September 2025 under this scheme.
100% interest waiver on overdue loans.
Deadline extended to 30 September 2025.
Only the principal and the insurance amount are to be paid.
Over 7,500 farmers benefited from ₹130 crore relief.
Applicable for long-term loans from Land Development Banks.
The Rajasthan government has extended the Mukhyamantri Overdue Interest Relief One Time Settlement Scheme 2025-26 to help farmers struggling with overdue loans. Now, farmers can avail the benefits of this scheme till 30 September 2025, with a 100% interest waiver provided by the state.
This move aims to bring financial relief to farmers and help them become eligible for fresh loans by clearing their old dues.
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This scheme is specially designed for farmers who have taken long-term loans from Land Development Banks and failed to repay them on time. These unpaid loans have now been categorized as overdue.
Under this scheme, farmers are required to pay only the principal loan amount and the insurance premium. The entire interest, penalty on interest, and recovery expenses will be waived off completely by the government. The main aim is to free farmers from the burden of debt and help them reclaim their mortgaged land.
Initially, the last date to apply was 30 June 2025. But due to massive farmer interest and long queues at banks, the government extended the deadline by three more months, until 30 September 2025. Rajasthan’s Minister of State announced this extension for Cooperation, Gautam Kumar Dak, who said the goal is to ensure every eligible farmer can benefit from this opportunity.
100% interest waiver by the government
Penalty and recovery charges also waived
Farmers only need to pay the principal and the insurance premium
Land gets freed from mortgage
Farmers become eligible for fresh agricultural and investment loans
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There is great enthusiasm among Rajasthan's farmers for this scheme. On 30 June 2025, thousands of farmers rushed to cooperative land development banks to take advantage of the scheme. According to the Minister, receipts were being issued till late at night, showing how serious farmers are about clearing their dues and starting afresh.
As of now, out of 30,007 eligible borrowers, over 7,500 farmers have already taken advantage of the scheme. A total interest waiver of ₹130 crore has been provided, helping these farmers free their mortgaged land and return to independent farming. Additionally, long-term agriculture and non-agriculture investment loans are also being distributed to farmers. For this, loan targets have been assigned to 36 primary land development banks in the state.
If you are a farmer from Rajasthan and have overdue loans from the Land Development Bank, you can still benefit from this scheme. Here's how:
Visit your nearest Land Development Bank branch
Deposit at least 25% of your principal and insurance amount
Complete this process before 30 September 2025
Don’t wait till the last day; apply early to avoid rush and delays
The government urges all eligible farmers to complete the process in time and take full advantage of the scheme.
Through this one-time settlement scheme, the Rajasthan government is working towards making farmers financially strong and self-reliant. By waiving off old interest and offering relief, the scheme is helping farmers get back their land and their livelihood. Minister Gautam Kumar Dakhas assured that more such farmer-friendly initiatives will be launched in the future to support the farming community.
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The One-Time Settlement Scheme 2025 is a golden opportunity for Rajasthan’s farmers to clear their overdue loans without paying any interest. With full support from the state government, farmers can reclaim their land, become debt-free, and access new credit to improve their agricultural output. The last date to apply is 30 September 2025—don’t miss it!