No Proposal for Farm Loan Waiver Says Nirmala Sitharaman in Parliament
Finance Minister Nirmala Sitharaman clarifies that no farm loan waiver proposal is under consideration while highlighting government schemes offering credit support subsidies and direct benefits to strengthen farmers financial stability
- Nirmala Sitharaman rejects farm loan waiver proposal
- Government focuses on farmer credit support schemes
- Farm loan policy prioritizes subsidies and financial aid
New Delhi: Finance Minister Nirmala Sitharaman has made it clear in Parliament that the government is not considering any proposal for a complete farm loan waiver. The statement comes amid ongoing discussions on measures to support farmers facing financial challenges.
Instead of loan waivers, the government is focusing on strengthening farmers through structured financial support. Sitharaman highlighted that timely credit is being ensured through the Kisan Credit Card scheme, which allows farmers to access necessary funds for agricultural activities.
The minister also pointed to the Modified Interest Subvention Scheme, under which farmers can avail loans of up to Rs 3 lakh at subsidized interest rates. Those who repay loans on time are provided with additional incentives, encouraging responsible borrowing and repayment.
In a move to improve credit accessibility, the government has increased the limit for collateral free short term agricultural loans from Rs 1.60 lakh to Rs 2 lakh, following guidelines issued by the Reserve Bank of India.
Sitharaman further noted that schemes like PM Kisan Samman Nidhi continue to provide direct financial assistance to landholding farmers, while crop insurance programs offer protection against uncertainties.
Responding to another query, the Finance Minister confirmed that income tax exemption on disability pensions for armed forces personnel remains in place. She stated that a provision related to this has been included in the Income Tax Act 2025.
As of January 31 this year, a total of 147263 armed forces personnel had retired with disabilities, while 89598 individuals are currently receiving disability pensions, she added. The government maintained that its approach focuses on long term support systems rather than one time relief measures like loan waivers.
