Maharashtra Govt Waives Stamp Duty for Farm and Crop Loans Up to ₹2 Lakh

In a move aimed at easing access to institutional credit for farmers, the Maharashtra government has removed stamp duty on documentation linked to small agricultural and crop loans, offering immediate relief to rural borrowers. 

Key Development 

As per PTI reports, the state has waived stamp duty on all legal documents required for agricultural and crop loans of up to ₹2 lakh.  

This includes paperwork such as title deeds, mortgage and pledge documents, guarantee letters, loan agreements and deposit-related instruments. The decision took effect from January 1 following a government notification issued by the revenue and forest department. 

Statements and Rationale 

Revenue Minister Chandrashekhar Bawankule said the move was prompted by concerns that farmers were bearing additional financial costs even before accessing loans. He added that CM Devendra Fadnavis had directed departments to simplify revenue laws and make them more citizen-friendly, leading to the policy change. 

Earlier, farmers had to pay stamp duty of 0.3% for every ₹1 lakh borrowed, translating to around ₹600 on a ₹2 lakh crop loan. The complete waiver is expected to directly lower borrowing costs for small and marginal farmers. 

Impact and Applicability 

The exemption will apply across Maharashtra and will be binding on all banks, cooperative societies and lending institutions operating in the state.  

The removal of stamp duty is expected to streamline the crop loan process and improve access to formal credit, particularly during the sowing season. 

Read More: Punjab Government Announces Extension for Tax Dues Settlement Scheme till March 31, 2026! 

Conclusion 

By eliminating stamp duty on small agricultural loans, Maharashtra has reduced upfront borrowing costs for farmers and simplified loan documentation, reinforcing its push to make farm credit more accessible and farmer-friendly. 

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