Tamil Nadu Chief Minister M.K. Stalin announced a comprehensive crop loan waiver scheme on Monday, providing relief to marginal farmers. According to reports from Business Standard, the scheme covers crop loans up to ₹50,000 for marginal farmers who borrowed from cooperative banks, while larger farmers will receive ₹5,000 relief. The announcement was made during a review meeting at the Secretariat, with the Chief Minister leading the discussion alongside key ministers and department officials.
The loan waiver scheme is expected to benefit 1,422,000 farmers and will result in an additional government expenditure of ₹2,044.46 crore. As reported by Business Standard, Tamil Nadu minister CTR Nirmalkumar explained that out of 1,692,000 farmers who have agricultural loans, 1,422,000 farmers' loans have been waived off. The scheme covers farmers who borrowed between May 1, 2025 and February 28, 2026 from cooperative banks.
The government has implemented a graded relief structure for loans exceeding ₹50,000. According to the official statement, farmers with loans between ₹50,001 and ₹60,000 will receive a waiver of ₹40,000, while those in the ₹60,001 to ₹70,000 bracket will get ₹30,000. Farmers with loans between ₹70,001 and ₹80,000 will be granted ₹20,000 waiver, and those with loans ranging from ₹80,001 to ₹1 lakh will receive ₹10,000. For loans above ₹1 lakh, relief has been fixed at ₹5,000. As per ANI, for small farmers with debts under ₹50,000, 50% of the loan amount will be waived.
The waiver scheme follows the Reserve Bank of India's model operating procedures for government debt waiver schemes dated November 28, 2025, which mandates full payment within 45 to 60 days. As reported by Business Standard, the Chief Minister has ordered the waiver of crop loans obtained by farmers from cooperative banks from May 1, 2025 to February 28, 2026, considering the current financial position and financial resources of the state government. The scheme was announced as part of the government's election promises, with minister CTR Nirmalkumar confirming this was one of their key commitments.
