Tamil Nadu government expands crop loan waiver to ₹75,000

Tamil Nadu Chief Minister C. Joseph Vijay, on June 16, 2026, announced a major modification in the cooperative agricultural loan waiver policy, which will now cover all farmers of the state, irrespective of their land holdings.

So, if you took a loan from a cooperative bank of up to Rs 75,000 between 1st May 2025 and 28th Feb 2026, then you do not have to pay it back. You will get a full waiver.

Big News for Tamil Nadu Farmers: What Exactly Changed?

Back on May 25, the Tamil Nadu government had announced a loan waiver of up to ₹50,000, but only for small and marginal farmers. That announcement didn't sit well with a large fragment of the farming community, who felt the scheme was too narrow and the cap too low.

Farmers pushed back, and the government listened. After CM Vijay chaired a review meeting on June 15 with ministers and officials, the scheme got a solid upgrade:

• Crop loans up to ₹75,000 → Full waiver for all farmers (marginal, small, and large)
• Crop loans above ₹75,000 → ₹35,000 waiver on the outstanding amount

A total of 14.43 lakh farmers will benefit from this announcement. And the total government expenditure will go up to ₹5,932.23 crore.

Who Benefits and How Much?

Farmer Category	Number of Farmers	Waiver Amount
Marginal Farmers	8,33,773	₹3,599.67 crore
Small Farmers	5,16,183	₹1,995.42 crore
Large Farmers	93,548	₹337.15 crore

Unsurprisingly, the biggest relief goes to the marginal farmers - the ones who need it the most.

Why This Waiver Matters

Crop loan waivers provide immediate relief to farmers who had a bad year or could not make their repayments on time. More than 14 lakh farmers are now covered, and nearly ₹6,000 crore is being pumped back into the hands of farmers. It is one of the more significant farm relief announcements Tamil Nadu has seen in recent times.

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