CHANDIGARH: The Punjab Cabinet on Tuesday approved a loan waiver worth Rs 67.84 crore for 4,727 Scheduled Caste families who had taken loans from the Punjab Scheduled Castes Land Development and Finance Corporation. These loans were given out up to March 31, 2020, and the waiver will apply to both defaulting and regular loan recipients, including persons with disabilities.
The cabinet gave its approval to waive off all outstanding loans distributed by the finance corporation until the mentioned date. District Managers of the Corporation will issue “No Due Certificates” to all 4,727 loanees, which includes 4,685 defaulters and 42 regular payers. The state government will repay the entire amount—including the principal, interest, and penal interest—to the Corporation. This amount has been calculated as of April 30, 2025, and may increase slightly depending on when the government issues the official notification. Any increase will also be reimbursed by the government.
Even those who have previously benefited from earlier loan waiver schemes will be included under this one. Once the waiver is applied, there will be no further recovery action taken against the loanees, and their accounts will be treated as fully settled. However, loanees who have filed court cases against the Corporation will only be included if they withdraw their cases unconditionally and provide proof.
According to the 2011 Census, Scheduled Castes make up nearly 32% of Punjab’s population. Many in the community had taken loans to start small businesses for self-employment, but several could not repay due to tough financial conditions. As a result, their debts remained unpaid for years.
Finance Minister Harpal Singh Cheema said after the cabinet meeting that this decision will bring much-needed relief to thousands of families who have struggled with loan burdens for nearly two decades. He said the waived amount includes around Rs 30 crore in principal, Rs 22 crore in interest, and Rs 15 crore in penal interest. Cheema added that earlier governments failed to act on the repeated pleas of these borrowers.
He also pointed out that 84% of the loanees have successfully repaid their loans, showing their sincerity and willingness to work. He said many pending loans remained due to the death of borrowers or other unavoidable reasons, and this waiver will ease the financial and mental burden on the families. Cheema said this step reflects the AAP-led Punjab government’s commitment to social justice and helping the most disadvantaged groups in society.
