Tamil Nadu Announces Crop Loan Waiver Scheme for 14.22 Lakh Farmers

In a major relief for farmers ahead of the next cultivation season, Tamil Nadu Chief Minister C. Joseph Vijay has announced a crop loan waiver scheme for farmers who availed loans through cooperative banks between May 1, 2025 and February 28, 2026.

The announcement was made after a high-level review meeting attended by Agriculture Minister M. Vinoth, Cooperation Minister V. Gandhiraj, Finance Minister N. Marie Wilson, and senior government officials.

Full Waiver for Marginal Farmers

Under the new scheme, marginal farmers who borrowed up to Rs 50,000 will receive a complete waiver of their crop loans. Small farmers in the same category will get a 50 percent waiver.

The government has also introduced a graded relief structure for farmers with higher loan amounts.

Waiver Details

- Eligible loan period: May 1, 2025 to February 28, 2026
- Beneficiaries: 14,22,555 farmers
- Total cost to State: Rs 2,044.46 crore
- Marginal farmers up to Rs 50,000 loan: 100% waiver
- Small farmers up to Rs 50,000 loan: 50% waiver
- Marginal farmers with Rs 50,001–60,000 loan: Rs 40,000 waiver
- Marginal farmers with Rs 60,001–70,000 loan: Rs 30,000 waiver
- Marginal farmers with Rs 70,001–80,000 loan: Rs 20,000 waiver
- Marginal farmers with Rs 80,001–1,00,000 loan: Rs 10,000 waiver
- Farmers with loans above Rs 1 lakh: Rs 5,000 waiver
- Other large farmers: Flat waiver of Rs 5,000

Over 14 Lakh Farmers to Benefit

According to the Tamil Nadu government, around 14,22,555 farmers who obtained crop loans through cooperative banks during the eligible period will benefit from the scheme.

The total financial burden on the State government is estimated at Rs 2,044.46 crore.

Officials said the decision was taken after considering the State’s financial condition and following the Reserve Bank of India’s operational guidelines for government loan waiver schemes issued in November 2025.

Relief Ahead of Cultivation Season

The government believes the scheme will help farmers clear outstanding dues and become eligible for fresh crop loans for the upcoming agricultural season.

The announcement is expected to provide major financial support to marginal and small farmers across Tamil Nadu who have been struggling with rising cultivation costs and loan repayments.