Tamil Nadu Chief Minister C. Joseph Vijay on Tuesday announced a full waiver of crop loans of up to Rs 75,000, availed by farmers through cooperative banks between May 1, 2025, and February 28, 2026. The decision is expected to benefit around 14.43 lakh farmers across the state and will involve an additional financial burden of Rs 5,932 crore on the state exchequer, according to an official release.
The move is to provide significant relief to farmers and support them ahead of the upcoming cultivation season.
The announcement was made following a review meeting chaired by the Chief Minister with ministers and senior officials at the Secretariat. As part of the revised scheme, farmers who have taken loans exceeding Rs 75,000 will get a waiver of Rs 35,000.
The latest decision comes in response to representations from farmers after the state government had last month announced a waiver of loans up to Rs 50,000 for small and marginal farmers who had availed cooperative bank loans. The current announcement expands and revises that earlier relief measure.
According to the government, the waiver will be implemented in line with the Reserve Bank of India’s Model Operating Procedures for Government Loan Waiver Schemes, which require the full disbursement of the waiver amount within 45 to 60 days.
The release noted that despite the state’s challenging financial position, the government has approved a waiver amounting to nearly Rs 6,000 crore for farmers who availed crop loans during the specified period.
“This crop loan waiver will be of great benefit to farmers who wish to obtain loans for the upcoming cultivation season,” the Chief Minister said, as quoted in the official statement.
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