Revised Crop Loan Waiver Scheme

  • The Tamil Nadu government has announced the implementation of a revised loan waiver scheme for crop loans obtained from cooperative banks, aimed at providing financial relief to farmers.
  • This scheme will apply to farmers who availed crop loans from cooperative institutions between May 1, 2025, and February 28, 2026.
  • Under the new scheme, the entire outstanding loan amount will be waived for farmers who took crop loans of up to ₹75,000.
  • Meanwhile, farmers who availed loans exceeding ₹75,000 will be provided loan relief of up to ₹35,000.
  • The state government believes that this decision will offer financial assistance to lakhs of farmers and strengthen the agricultural sector.
  • This move is considered significant in terms of alleviating the mounting economic pressure on farmers and addressing their debt-related issues.
  • It is noteworthy that the initial scheme, announced on May 25, 2026, included a provision for a loan waiver of up to ₹50,000 exclusively for small and marginal farmers.
  • The revised scheme not only increases the relief amount but also expands the scope of eligible beneficiaries, enabling a larger number of farmers holding cooperative loans to avail of the benefits.

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