CHENNAI: In a move to ease the financial burden on farmers ahead of the next cultivation season, Chief Minister C Joseph Vijay on Monday announced a crop loan waiver scheme for farmers who had availed loans through cooperative banks between May 1, 2025 and February 28, 2026.
The announcement was made after the chief minister chaired a high-level review meeting with Agriculture Minister M Vinoth, Cooperation Minister V Gandhiraj, Finance Minister N Marie Wilson, and senior officials.
Under the scheme, marginal farmers who had borrowed up to Rs 50,000 will receive a complete waiver of the crop loan amount. Small farmers in the same loan category will be eligible for a 50 per cent waiver. The government has also introduced a graded waiver structure for farmers with higher loan amounts.
Marginal farmers with crop loans between Rs 50,001 and Rs 60,000 will receive a waiver of Rs 40,000, while those with loans between Rs 60,001 and Rs 70,000 will get Rs 30,000 waived. Similar concessions have been extended across higher slabs. Small farmers in these categories will receive waivers ranging between Rs 20,000 and Rs 5,000. Farmers with crop loans exceeding Rs 1 lakh, including large farmers, will receive a waiver of Rs 5,000 each.
The State government said the decision was taken after considering the prevailing financial position of Tamil Nadu and in accordance with the Reserve Bank of India's operational guidelines for government loan waiver schemes issued on November 28, 2025.
Officials said the waiver would enable farmers to access fresh crop loans for the forthcoming agricultural season without the pressure of outstanding dues.
As many as 14,22,555 farmers who availed crop loans through cooperative banks during the period will benefit from the scheme, which entails an additional expenditure of Rs 2,044.46 crore on the State exchequer.
Pruning burden
* 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