Tamil Nadu Government Announces Crop Loan Waiver for Farmers Through Cooperative Banks

Tamil Nadu Chief Minister C. Joseph Vijay on Sunday (May 25) announced a major crop loan waiver scheme for farmers who borrowed loans through cooperative banks across the state.

Under the scheme, crop loans obtained between May 1, 2025, and February 28, 2026, will be eligible for waiver benefits.

According to the official announcement issued by the Tamil Nadu government, marginal farmers who borrowed up to ₹50,000 will receive a complete loan waiver.

Similarly, small farmers will receive a 50% waiver, up to ₹25,000.

Loan Waiver Details

• For loans up to ₹50,000:
  • Marginal farmers: Full waiver up to ₹50,000
  • Small farmers: 50% waiver up to ₹25,000
• For loans between ₹50,001 and ₹60,000:
  • Marginal farmers: ₹40,000 waiver
  • Small farmers: ₹20,000 waiver
• For loans between ₹60,001 and ₹70,000:
  • Marginal farmers: ₹30,000 waiver
  • Small farmers: ₹15,000 waiver
• For loans between ₹70,001 and ₹80,000:
  • Marginal farmers: ₹20,000 waiver
  • Small farmers: ₹10,000 waiver
• For loans between ₹80,001 and ₹90,000:
  • Marginal farmers: ₹5,000 waiver
  • Small farmers: ₹5,000 waiver

The government also announced that other large-scale farmers who availed crop loans through cooperative banks would receive a waiver of ₹5,000 each.

Officials stated that the scheme is expected to provide major financial relief to farmers and help them access fresh crop loans for the upcoming cultivation season.

According to the Tamil Nadu government, a total of 14,22,555 farmers who received crop loans through cooperative banks between May 1, 2025, and February 28, 2026, are expected to benefit from the scheme.

The government estimated that the loan waiver programme would create an additional financial burden of approximately ₹2,044.46 crore for the state.