Chandigarh, June 3: In a major reprieve to the Scheduled Caste (SC) community in the state, the Punjab Cabinet, led by Chief Minister Bhagwant Singh Mann, on Tuesday approved a loan waiver worth ₹67.84 crore, benefiting around 4,800 families. The Council of Ministers, chaired by the Chief Minister at his official residence, took this decision during their meeting.

Punjab Cabinet Approves ₹67.84 Cr Loan Waiver for SC and Divyangjan Loanees”

Disclosing this here today, a spokesperson of the Chief Minister’s Office stated that the Cabinet granted ex-post facto approval for the Waiver of Loans Disbursed up to March 31, 2020, for loanees of the Punjab Scheduled Castes Land Development & Finance Corporation (PSCFC). The waiver covers all loans disbursed by the PSCFC up to the mentioned date, offering significant relief to SC and Divyangjan (persons with disabilities) loanees. This move will benefit a total of 4,727 loanees for an aggregate amount of ₹67.84 crore. The loan waiver scheme will cover all 4,727 cases, including 4,685 defaulting loanees and 42 regular ones. District Managers of PSCFC will issue “No Due Certificates” (NDCs). The state government will reimburse PSCFC the full amount of ₹67.84 crore, which includes principal, interest, and penal interest calculated as of April 30, 2025. The cut-off date for calculating the final interest amount will be the date on which the government issues the notification to implement the scheme.

Punjab Loan Waiver Brings ₹67.84 Cr Relief to 4,727 SC and Divyangjan Beneficiaries”

Consequently, the total waiver amount may increase, and any such increase will also be reimbursed by the government. Importantly, loanees who have previously availed benefits under earlier waiver schemes are also eligible for coverage under this initiative. No recovery proceedings will be initiated against loanees under PSCFC loan regulations post-waiver. Their accounts will be considered fully settled as of the cut-off date. However, loanees who have filed court cases against the Corporation will not be eligible unless they unconditionally withdraw their cases and provide documented proof. As per the 2011 Census, Scheduled Castes constitute 31.94% of Punjab’s total population. Many members of this community have availed loans from PSCFC to establish self-employment ventures aimed at their economic upliftment. However, some borrowers have been unable to repay their loans due to circumstances beyond their control, leading to defaults. With the implementation of this waiver, 4,727 poor SC and Divyangjan beneficiaries will receive relief amounting to ₹67.84 crore—comprising ₹30.02 crore in principal, ₹22.95 crore in interest, and ₹14.87 crore in penal interest (calculated up to April 30, 2025). This initiative will help restore their dignity and enable them to lead a more respectable life in society.

“Punjab Loan Waiver Restores Dignity, Frees 4,727 SC Families from Debt”

Additionally, the waiver will allow beneficiaries to utilize the freed-up financial resources for productive work to support their families. It will also empower PSCFC to extend fresh loans to other deserving SC individuals in the future. This marks the beginning of relief and dignity for thousands of families who have been burdened by debt for years. A total of 4,727 families will directly benefit from this scheme. These loans were given to help them start their livelihoods by opening small businesses. These businesses include dairy farming, grocery shops, tailoring, boutiques, and wooden furniture work, among others. Additionally, they can open building material or hardware shops. Furthermore, they may engage in leather goods manufacturing, pursue education loans, or even start restaurants. These families could not repay their loans due to several difficult circumstances. One such circumstance is the main earning member passing away. Another is prolonged illness consuming all their savings. Some families have no other source of income left. As recovering these loans from such people was unjust, so the state government has decided to waive them off. PSCFC is a trusted institution. It was established in 1971. It has been providing low-interest loans to the Scheduled Castes community.

AAP government understands the pain of SC families.

Till now, the corporation has successfully disbursed loans worth ₹846.90 crore. Moreover, these loans have benefited over 5.41 lakh people. The Aam Aadmi Party (AAP) government has once again proven that they don’t just make promises. They fulfil them. Previous governments treated the SC community merely as a vote bank. The AAP government understands the pain of SC families. They have always given them equality, rights, and respect. This scheme is not just about loan waiver it’s about restoring dignity, delivering justice, and offering a new beginning.