Tamil Nadu chief minister C Joseph Vijay on Monday announced a full waiver on cooperative crop loans up to ₹75,000 distributed among the state’s farmers. Earlier, in May, the government had announced a complete waiver on crop loans up to ₹50,000 availed by small farmers.
Vijay said the latest waiver would cost the state exchequer ₹953.06 crore. Cooperative crop loans to the tune of an amount up to ₹75,000 would be waived completely.
However, loans between ₹75,000 and ₹1 lakh would be subject to a waiver of up to ₹75,000, while loans above ₹1 lakh would be subject to a ₹35,000 waiver.
A June 19 order was issued to revise the scheme, he said. “Under this, full loan waiver was announced for those who had borrowed up to ₹75,000 and a waiver of ₹35,000 for those who had borrowed above ₹75,000, thereby waiving cooperative crop loans to the tune of ₹5,932.23 crore to help 14.44 lakh (1.44 million) farmers,” he said. The bank accounts of 1.33 million farmers received a cumulative ₹5,267 crore under this waiver on July 31.
“2,38,264 farmers who have taken crop loans between ₹75,000 and ₹1 lakh will receive a waiver of up to ₹75,000 each. This will enable them to get an additional waiver of up to ₹40,000 over and above the waiver amount already received,” said the chief minister.
In its manifesto, the TVK party had announced that cooperative crop loans to farmers owning up to 5 acres of land would be waived completely, while those owning more land would receive a 50% waiver.
What are RBI guidelines for waiver of loans?
As per the Reserve Bank of India’s November 28, 2025 guidelines on the operational procedure of government loan waiver schemes, the government must remit the full waiver amount completely to cooperative banks within 45 to 60 days.
