Tamil Nadu Announces ₹2,044.46 Crore Crop Loan Waiver Scheme for Over 14 Lakh Farmers

The Tamil Nadu Government on Monday announced a crop loan waiver scheme for farmers who borrowed through cooperative banks, as per news reports.  

Chief Minister Vijay said marginal farmers with outstanding crop loans of up to ₹50,000 would receive a full waiver. The scheme is to benefit around 14.22 lakh farmers across the state. 

The government has estimated an additional expenditure of ₹2,044.46 crore towards implementation of the relief measure. 

Relief Linked to Loan Size 

According to the government statement, farmers with loans above ₹50,000 will receive relief based on the size of the outstanding amount. Borrowers with dues between ₹50,001 and ₹60,000 will get a waiver of ₹40,000. 

Farmers with loans between ₹60,001 and ₹70,000 will receive ₹30,000 relief. Those with outstanding amounts between ₹70,001 and ₹80,000 will get ₹20,000 waived. 

For loans between ₹80,001 and ₹1 lakh, the waiver amount has been fixed at ₹10,000. Farmers with crop loans above ₹1 lakh will receive relief of ₹5,000. 

Loans Taken Between May 2025 and February 2026 Covered 

The waiver applies to crop loans availed through cooperative banks between May 1, 2025, and February 28, 2026.  

The government said marginal farmers with loans below ₹50,000 would receive a complete waiver, while small farmers in the same category would get a 50% waiver. 

Reports suggest the decision was taken in line with the Reserve Bank of India’s model operating procedures on government debt waiver schemes issued in November 2025. The guidelines require state governments to settle waived amounts within 45 to 60 days. 

Review Meeting Held at Secretariat 

A review meeting on the implementation of the scheme was held at the Secretariat in Chennai under the Chief Minister’s leadership. Ministers from the agriculture, finance and cooperation departments attended the meeting along with senior officials. 

Around 16.92 lakh farmers had availed agricultural loans, of which 14.22 lakh farmers would benefit under the waiver announced by the state government. 

Read More: RBI Introduces Mandatory 3-Year Cooling-Off Period for Co-Operative Bank Directors After 10-Year Tenure! 

Conclusion  

The state government has allocated ₹2,044.46 crore for the crop loan relief scheme covering marginal and small farmers. The waiver structure has been linked to the size of outstanding loans. 

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