TN government extends full crop loan waiver to loans up to Rs 75,000

Tamil Nadu Chief Minister C. Joseph Vijay has expanded the state's crop loan waiver scheme, extending full relief for cooperative bank crop loans up to Rs 75,000. The revised package is expected to benefit 14.43 lakh farmers and cost Rs 5,932.23 crore

Chennai: Yielding to demands from farmers’ organisations and political parties, Tamil Nadu Chief Minister C. Joseph Vijay on Tuesday announced a major expansion of the state’s crop loan waiver scheme, extending full relief to crop loans up to Rs 75,000 availed through cooperative banks by small, marginal and other farmers.

The decision comes barely three weeks after the government unveiled a crop loan waiver programme covering loans up to Rs 50,000 obtained by small and marginal farmers. Following the announcement, several farmers’ groups and political parties had urged the government to broaden the scope of the scheme, arguing that a large number of cultivators with higher borrowings remained outside its ambit.

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Acting on these representations, the government conducted a detailed review of the scheme at a high-level meeting chaired by the Chief Minister at the Secretariat on Monday. Ministers and senior officials from the Agriculture, Cooperation, Finance, Planning and Development departments participated in the deliberations.

Based on the review, the government decided to increase the waiver limit from Rs 50,000 to Rs 75,000. Under the revised package, crop loans obtained through cooperative banks between May 1, 2025, and February 28, 2026, will be fully waived if the outstanding amount is up to Rs 75,000.

The government has also announced relief for farmers whose crop loans exceed Rs 75,000. Such borrowers will receive financial assistance of Rs 35,000 each, ensuring that a wider section of the farming community benefits from the scheme.

According to official estimates, the enhanced crop loan waiver package will benefit 14.43 lakh farmers across Tamil Nadu and involve an additional expenditure of Rs 5,932.23 crore. The government said 8.33 lakh marginal farmers would receive waivers and relief worth Rs 3,599.67 crore, while 5.16 lakh small farmers would benefit to the tune of Rs 1,995.42 crore. Another 93,548 farmers classified under other categories would receive assistance amounting to Rs 337.15 crore.

Officials said the revised scheme was formulated after considering farmers’ demands and the operational guidelines issued by the Reserve Bank of India for government-sponsored loan waiver programmes.

The Chief Minister directed officials to implement the expanded scheme without delay so that eligible farmers can access fresh institutional credit and prepare for the upcoming cultivation season without financial constraints.