Tamil Nadu Government Implements Crop Loan Waiver for Farmers
T.N. government announces cooperative crop loan waiver up to ₹50,000

Image: The Hindu
The Tamil Nadu government, led by Chief Minister C. Joseph Vijay, has announced a waiver for cooperative crop loans up to ₹50,000 for small and marginal farmers. This initiative will benefit over 14 lakh farmers and will cost the state approximately ₹2,044.46 crore.
- 01The waiver applies to loans availed by small and marginal farmers from cooperative banks since May 2025.
- 02Marginal farmers will receive a complete waiver for loans up to ₹50,000, while small farmers will have 50% of their loans waived.
- 03Farmers who borrowed between ₹50,000 and ₹60,000 will receive partial waivers of ₹40,000 for marginal farmers and ₹20,000 for small farmers.
- 04Those borrowing over ₹1 lakh will receive a flat waiver of ₹5,000.
- 05A total of 14,22,555 farmers will benefit from this scheme, costing the government ₹2,044.46 crore.
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On May 25, 2026, the Tamil Nadu government, under Chief Minister C. Joseph Vijay, announced a significant waiver for cooperative crop loans aimed at supporting small and marginal farmers. The scheme specifically targets loans up to ₹50,000, which will be fully waived for marginal farmers. Small farmers will benefit from a 50% waiver within the same limit. For those who borrowed between ₹50,000 and ₹60,000, marginal farmers will receive a waiver of ₹40,000, while small farmers will get ₹20,000. As the loan amounts increase, the waivers decrease, with farmers borrowing over ₹1 lakh receiving a flat waiver of ₹5,000. Additionally, large-scale farmers who took out crop loans through cooperative banks will also receive a uniform waiver of ₹5,000 each. The government estimates that 14,22,555 farmers who secured loans from cooperative banks between May 1, 2025, and February 28, 2026, will benefit from this initiative, which will impose an additional financial burden of approximately ₹2,044.46 crore on the state's budget.
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The loan waiver will alleviate financial burdens on small and marginal farmers, enabling them to invest in their agricultural activities.
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