A Review On Mahatma Jyotiba Phule Shetkari Karj Mukti Yojana (Agriculture Loan Waiver) Scheme In Nagpur District

Abstract

Over the last decade, debt cancellation programmes for farmers have become a common governmental tool. Many worries that loan waivers would vitiate the repayment culture in the agriculture sector and harm the financial stability of banks despite widespread agreement on the theoretical logic for such debt forgiveness and its profound contextual significance. Although there has been increasing empirical study in this area, the current data base on the effects of large-scale loan waivers remains thin. This work examines and synthesises the literature and statistics on the effects of loan waivers, focusing on the impact on farmers' access to bank loans. This article finds that the widespread negative effects on the formal banking industry may be exaggerated, even if loan waivers are an ineffective technique to increase agricultural incomes in the long run. The study explores potential next steps for developing a debt relief programme and highlights research gaps.