TN CM Vijay Announces Waiver Of Farmers' Crop Loans Up To Rs 50K

Chennai: Tamil Nadu Chief Minister C. Joseph Vijay on Monday announced a crop loan waiver scheme for farmers who availed loans through cooperative banks between May 2025 and February 2026. The waiving of crop loans obtained by farmers was among the numerous poll promises made by Vijay during the run up to the Assembly election.

Marginal farmers will get a complete waiver on loans up to Rs 50,000, while other categories will receive partial relief.

The Chief Minister conducted a review meeting at the Secretariat along with Minister for Agriculture and Farmers’ Welfare- R. Vinoth, Minister for Cooperation -V. Gandhiraj, Minister for Finance, Planning, and Development, N. Maria Wilson, along with senior departmental officials.

The decision to waiver the loans was taken in accordance with the Model Operational Procedures for Government Debt Waiver Schemes issued by the Reserve Bank of India on 28.11.2025 which stipulate that the Government must fully disburse the entire amount allocated for crop loan waivers within 45 to 60 days.Considering the current financial position and fiscal resources, the Chief Minister issued orders to waive crop loans obtained by farmers from Cooperative Banks between 01.05.2025 and 28.02.2026, even amidst these challenging circumstances, as detailed below.

Furthermore, other large-scale farmers who have availed crop loans through cooperative banks will be provided a crop loan waiver of Rs. 5,000 each. This waiver is expected to provide significant relief to farmers and support them in securing loans for the upcoming cultivation season. Under this crop loan waiver scheme, a total of 1,422,555 farmers who availed crop loans from cooperative banks between May 1, 2025, and February 28, 2026, are expected to benefit and will cost the state exchequer around Rs 2,044 crore as per the statement released by the Government.