Delivering a long-overdue lifeline to thousands of marginalized families, the Punjab Government on Tuesday approved the waiver of Rs 67.84 crore in loans owed by 4,727 Scheduled Caste (SC) families. The beneficiaries, many of whom had struggled under this debt for nearly two decades, had borrowed from the Punjab Scheduled Castes Land Development and Finance Corporation (PSCFC) to build small businesses or support their children’s education. The landmark decision, approved in a Cabinet meeting chaired by Chief Minister Bhagwant Mann on Tuesday, is being hailed as a defining moment of social justice in Punjab’s governance.

Of the total amount, Rs 30.02 crore comprises principal, Rs 22.95 crore is accumulated interest, and Rs 14.87 crore accounts for penal interest — pending as of April 30, 2025. These loans, taken until March 31, 2020, will now be entirely written off, bringing closure to years of financial distress for families who had little to no capacity to repay due to adverse personal and economic circumstances. Many had lost the sole earning member in their households or were battling chronic illness, leaving them incapable of meeting repayment schedules.

Chief Minister Bhagwant Mann, addressing the media, described the day as a “relief-filled dawn” for thousands of SC families. “This isn’t just a waiver, it’s about restoring dignity, delivering justice, and offering a fresh start to people who were otherwise abandoned by previous regimes,” Mann said. He pointed out that the loans, in most cases, were not taken out of luxury or carelessness, but to survive and uplift livelihoods through ventures like dairy farming, tailoring, grocery shops, furniture works, or educational pursuits.

Finance Minister Harpal Singh Cheema, who had announced the waiver in the state Budget 2025-26, shared that while 4,685 of these families had defaulted due to unavoidable crises, 42 had continued to repay regularly but will still benefit under the scheme. “These families had been running from pillar to post for years seeking relief. Their pleas were ignored by previous governments — be it Congress or the Akali-BJP alliance. We have not only heard them but acted with commitment,” said Cheema, noting that the decision reflected the Mann government’s resolve toward inclusive governance.

Cheema further highlighted that the PSCFC has maintained a high repayment success rate of 84 percent, underscoring that SC borrowers are typically responsible and committed to financial obligations. “But when people are devastated by loss, illness, or joblessness, it becomes unjust to demand repayment. This move will not only free families from harassment but also allow the Corporation to redeploy funds for new, deserving beneficiaries,” he added.

“No Due Certificates” will be issued by district PSCFC managers to the beneficiaries, who will no longer face recovery proceedings. However, loanees who have filed legal cases against PSCFC will be required to withdraw them unconditionally to become eligible.

The PSCFC, established in 1971, has so far disbursed Rs 846.90 crore in loans to more than 5.41 lakh beneficiaries. With Scheduled Castes constituting nearly 32 percent of Punjab’s population (Census 2011), the loan waiver comes as a significant socio-economic intervention for a community often relegated to the margins.

Calling it a “historic corrective measure”, the Mann-led Aam Aadmi Party Government has positioned the decision not just as economic relief, but as an embodiment of dignity, equality, and justice. As Punjab attempts to reimagine itself as a “Rangla Punjab”, this step marks a bold stride toward ensuring that prosperity is shared, and no one is left behind in the shadows of debt and despair.

·         Cabinet approved total loan waiver of Rs 67.84 crore

·         Total of 4,727 SC families to benefit

·         Loans taken from PSCFC up to March 31, 2020, to be covered

·         Waiver includes Rs 30.02 crore principal, Rs 22.95 crore interest, and Rs 14.87 crore penal interest

·         No Due Certificates to be given to all eligible borrowers

·         Borrowers, who have filed court cases, have to withdraw them to get the benefit

·         Those who got help under earlier schemes are also eligible

·         All eligible loan accounts will be treated as fully settled

·         Full amount to be paid back to the Corporation by the Govt