Tamil Nadu government restructures crop loan waiver scheme, extends eligibility period by a month

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Image used for representational purposes only. File | Photo Credit: G.N. Rao

The Tamil Nadu government has restructured the crop loan waiver scheme, announcing a waiver of ₹75,000 for farmers who obtained loans exceeding ₹75,000 from cooperative institutions. Farmers who obtained crop loans of up to ₹75,000 will continue to receive a full waiver of the loan amount.

Earlier, the arrangement was that farmers who had obtained loans ranging from ₹75,000 to ₹1 lakh would receive a maximum waiver of ₹75,000, while those who had borrowed more than ₹1 lakh would be given a maximum waiver of ₹35,000.

The government has also extended the eligibility period by a month, covering loans obtained by farmers up to March 31, 2026. Earlier, the scheme covered loans taken between May 1, 2025 and February 28, 2026.

A Government Order to this effect was issued by the Cooperation, Food and Consumer Protection Department. The State government has sanctioned an additional ₹2,842.77 crore towards the implementation of the expanded scheme. The total expenditure on the revised crop loan waiver scheme is estimated at ₹9,062.83 crore, of which ₹6,220.056 crore has already been released.

Under the revised scheme, 5,90,621 farmers who obtained loans of up to ₹75,000 will receive a full waiver, while 7,34,260 farmers who borrowed more than ₹75,000 will be eligible for a flat waiver of ₹75,000.

The government has also extended the benefit to 10,810 farmers who had repaid their loans in full before the issuance of the announcement of crop loan waiver. The revised order also provides for various interest-related reimbursements to benefit eligible farmers.

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