The Central Government has clearly stated that it is not considering any proposal for a complete loan waiver for farmers at the moment.
Speaking in the Lok Sabha on Monday, Finance Minister Nirmala Sitharaman said the government’s main focus is on improving farmers’ income and overall financial condition, rather than waiving loans.
She explained that the government is running several schemes to ensure farmers get timely and affordable loans.
Under the Kisan Credit Card (KCC) scheme, farmers can get crop loans of up to ₹3 lakh at a subsidized interest rate.
Farmers who repay their loans on time also receive extra benefits. All of this is provided under the Modified Interest Subsidy Scheme.
Steps Taken to Support Farmers
To give more relief, the government has increased the limit for unsecured agricultural loans. Earlier, this limit was ₹1.60 lakh, but now it has been raised to ₹2 lakh.
In addition, as per Reserve Bank guidelines, banks have been instructed to provide enough credit to the agriculture sector, so farmers can easily access funds when needed.
The Finance Minister also highlighted that under schemes like the Crop Insurance Scheme and Pradhan Mantri Kisan Samman Nidhi (PM-KISAN), money is being directly transferred to farmers’ bank accounts.
These steps aim to stabilize farmers’ income and reduce financial risk, so they don’t have to depend heavily on loans.
Clarification on Armed Forces Pension
Responding to another question, the Finance Minister clarified the issue of disability pension for armed forces personnel.
She said that the tax exemption on this pension already existed and is now being clearly included in the new Income Tax Act 2025 to avoid confusion.
This means the exemption has not been removed, but simply made clearer in the new law.
Government’s Overall Message
According to the government, the new rules continue the existing system. They do not introduce new taxes or remove existing exemptions.
Overall, the government’s message is clear: the focus is on building a strong financial support system for farmers instead of loan waivers, while also protecting the benefits of military personnel
