Rajasthan Government Launches 100% Interest Waiver Scheme for Farmers

Key Highlights:

• 100% rebate on overdue and penal interest.

• Applicable on loans overdue till July 1, 2024.

• A ₹200 crore budget allocated by the state government.

• Farmers must pay only the principal and the insurance premium.

• Heirs of deceased borrowers are also eligible.

The Rajasthan government has launched the Mukhyamantri Overdue Interest Relief Scheme 2025-26, offering major relief to farmers struggling with overdue loans. This scheme provides 100% interest and a penal interest rebate to eligible farmers who have defaulted on their loans. The main aim is to help these farmers return to the mainstream and support them in getting new loans for agriculture and related work.

Also Read: Pandit Deendayal Upadhyaya Poverty-Free Village Scheme: BPL Families to Get ₹21,000 and Many More Benefits

Loan Support for Farmers Through Government Schemes

To ensure timely and affordable loans for agricultural activities, the government runs several loan schemes through banks and cooperative societies. In Rajasthan, the Primary Cooperative Land Development Banks provide both agricultural and non-agricultural loans to farmers. Those who repay the loan on time are rewarded with interest rebates.

However, many farmers fail to repay the loans due to unforeseen reasons and become defaulters. As a result, they are denied fresh loans, which affects their ability to invest in farming. This new scheme is a step toward helping such farmers clear their old dues and restart their agricultural activities with financial support.

CM OTS 2025-26: 100% Interest Rebate for Overdue Loans

Minister of State for Cooperation (Independent Charge), Gautam Kumar Dak, announced that the Mukhyamantri Overdue Interest Relief Scheme (CM OTS) 2025-26 will benefit farmers who are members of the Land Development Banks and have overdue loans.

Key features of the scheme include:

• 100% rebate on overdue interest and penal interest.

• Farmers only need to deposit the overdue principal amount and the insurance premium.

• A budget of ₹200 crore has been allocated to implement this scheme.

• The land purchased during loan recovery auctions will be returned to farmers under this scheme.

• In case the borrower is deceased, their legal heirs will be eligible to receive the scheme benefits.

Eligibility Criteria for CM OTS Scheme

Only loans that became overdue on or before July 1, 2024, are covered under this scheme. However, loans distributed under the interest subsidy scheme of the state government from 2014-15 onwards are excluded.

Also Read: Good News: 36,351 Farmers to Get Interest Waiver, Eligible for New Loans

Loan Benefits After Clearing Overdue Amounts

Once the farmers clear their principal dues under this scheme, they will become eligible for fresh loans under the state’s 5% interest subsidy scheme. This will support them in both agricultural and non-agricultural activities, leading to their financial upliftment.

Digital Process and Awareness Campaign

The implementation of this scheme will be carried out through a dedicated online portal. Eligible farmers must submit their Jan Aadhaar number and mobile number to the respective Land Development Bank.

Minister Gautam Kumar Dak has directed all bank officials to:

• Ensure maximum awareness about the scheme.

• Reach out to all eligible farmers.

• Help them avail the benefits smoothly.

• Encourage farmers to participate actively and settle their overdue loans.

Also Read: Good News for Farmers: Bihar Extends Application Date for Solar Pump Plant, Offers Rs 1.50 Crore Subsidy

CMV360 Says

The Mukhyamantri Overdue Interest Relief Scheme 2025-26 is a significant step by the Rajasthan government to support indebted farmers. By waiving off interest and offering new loan opportunities, the scheme aims to bring financial stability to the farming community and improve their livelihoods.