Maharashtra's Landmark Move: Farmers Empowered to Mortgage Class 2 Land

Maharashtra's revenue department re-issues a circular allowing farmers with Class 2 land to mortgage it for bank loans. This policy change, prompted by bank discussions, aims to address previous mortgage restrictions and aid farmers in obtaining credit. The circular ensures statewide implementation, overcoming past legal limitations.

In a significant policy shift, Maharashtra's revenue department has reinstated a directive enabling farmers holding Class 2 land to mortgage it for bank loans. Announced by Revenue Minister Chandrashekhar Bawankule, this move aims to alleviate long-standing obstacles faced by these farmers.

Previously, legal restrictions prevented banks from accepting Class 2 land as collateral, largely denying farmers access to necessary credit. During a recent discussion with officials from the Satara District Central Co-operative Bank, the pressing issue was highlighted, prompting the department to reissue the outdated circular initially released in 1990.

The new directive mandates that all divisional commissioners and district collectors ensure that the policy is uniformly applied across the state. By accepting Class 2 land as collateral, district central and nationalized banks can now offer loans more readily, facilitating better financial support for farmers in need.

(With inputs from agencies.)