Key facts
- Tamil Nadu CM C Joseph Vijay announced a full waiver of crop loans up to Rs 75,000.
- The waiver is for loans taken from cooperative banks between May 1, 2025, and February 28, 2026.
- Approximately 14.43 lakh farmers will benefit from this scheme.
- The state government's expenditure for the waiver is estimated at Rs 5,932 crore.
- Farmers with loans over Rs 75,000 will get a Rs 35,000 waiver.
Tamil Nadu Chief Minister C Joseph Vijay announced on Tuesday a full waiver of crop loans up to Rs 75,000 for farmers who availed them through cooperative banks between May 1, 2025, and February 28, 2026. This initiative is expected to benefit 14.43 lakh farmers across the state and will entail an additional expenditure of Rs 5,932 crore for the government.
Following a review meeting with ministers and senior officials, the Chief Minister stated that farmers with loans exceeding Rs 75,000 will receive a waiver of Rs 35,000. This announcement follows a previous waiver of up to Rs 50,000 for small and marginal farmers, indicating a revision and expansion of the relief measures.
The government release noted that according to the Reserve Bank of India's Model Operating Procedures for Government Loan Waiver Schemes, the entire amount of the crop loan waiver should be disbursed within 45 to 60 days. The Chief Minister expressed that this waiver will be of significant benefit to farmers preparing for the upcoming cultivation season.