Tamil Nadu Chief Minister C. Joseph Vijay on June 16 announced a major revision to the state's cooperative crop loan waiver scheme, extending benefits to farmers across all landholding categories. The revised scheme covers crop loans availed from cooperative banks between May 1, 2025, and February 28, 2026.
Revised Waiver Structure
Under the new announcement, all farmers - including marginal, small and large landholders, who have taken crop loans of up to Rs 75,000 will receive a full waiver. Farmers with crop loans exceeding Rs 75,000 will be eligible for a Rs 35,000 waiver.
The expanded scheme is expected to benefit around 14.43 lakh farmers and will cost the state government Rs 5,932.23 crore.
Beneficiary Breakdown
According to an official government release, the waiver will cover:
8,33,773 marginal farmers, who will receive relief amounting to Rs 3,599.67 crore
5,16,183 small farmers will benefit from waivers worth Rs 1,995.42 crore
93,548 large farmers will receive loan relief totalling Rs 337.15 crore
Background and Implementation
The announcement was made following a review meeting chaired by the Chief Minister with ministers and senior government officials at the Secretariat.
The revised scheme comes in response to requests from farmers, following the government's announcement last month of a loan waiver of up to Rs 50,000 exclusively for small and marginal farmers.
The government noted that, under the Reserve Bank of India's model operating procedures for loan waiver schemes, the entire waiver amount should be disbursed within 45 to 60 days. Despite financial constraints, the state has decided to implement the expanded waiver package to support the farming community.
In the official release, Chief Minister Vijay said the scheme would provide significant relief to farmers and help them access fresh credit for the upcoming cultivation season.
The government expressed confidence that the measure would strengthen agricultural activity and ease the financial burden on lakhs of farming families across the state.
