Tamil Nadu extends crop loan waiver by one month ahead of Diwali; eligible farmers to get relief of up to ₹75,000

The TVK government, led by C Joseph Vijay, on Saturday announced that it has extended its crop loan waiver scheme by one month, bringing cheer to Tamil Nadu's farming community a day ahead of Diwali.

According to a government order, the state has sanctioned an additional ₹2,842.77 crore for the scheme, extending relief of up to ₹75,000 to eligible farmers who took crop loans from cooperative societies between May 1, 2025, and March 31, 2026, The New Indian Express reported.

The previous cut-off for eligible crop loans was February 28, 2026. The state has now extended this period by a month to March 31, 2026, while also removing the earlier distinction in waiver limits for borrowers with larger loans.

What changes for farmers?

Under the revised scheme, eligible farmers who have borrowed up to ₹75,000 will receive a waiver of the entire loan amount. Meanwhile those with loans exceeding ₹75,000 will be eligible for a waiver of up to ₹75,000.

The government estimates that crop loans amounting to ₹8,312.21 crore taken by approximately 13.25 lakh farmers will qualify under the revised classification.

Under the earlier provision, farmers with crop loans exceeding ₹1 lakh were eligible for a waiver of only up to ₹35,000.

Scheme covers repaid loans

The expanded scheme also covers farmers who have already repaid their loans, providing relief through reimbursement of eligible interest payments.

It also extends benefits to farmers who have taken multiple crop loans, whether individually or through different members of the same family, as well as pensioners who obtained crop loans and have a monthly pension of ₹10,000.

How much is govt spending on this scheme?

The total estimated expenditure on the expanded scheme is ₹9,062.83 crore.

The government order said that ₹6,220.056 crore has already been released and authorised the release of the balance ₹2,842.774 crore, comprising ₹2,562.774 crore towards principal and ₹280 crore towards interest.

The scheme was first revised on June 16, providing a full waiver for eligible loans of up to ₹75,000 and a waiver of ₹35,000 for loans exceeding that amount.

Later, on August 17, the state's Chief Minister Vijay announced a higher waiver of up to ₹75,000 for farmers with loans ranging from ₹75,000 to ₹1 lakh.

According to the news report, several farmers’ organisations across the state has welcomed the extension but urged the government to fulfil its election promise of a full waiver. They sought relief for farmers who had borrowed before 2025 and those who had already repaid their loans, besides the declaration of Cauvery delta districts as drought-affected.

Who are eligible for the scheme?

To be eligible for receiving the crop loan waiver benefits, a Tamil Nadu resident must fulfill the following requirements:

• Eligible lenders: Borrowers must have taken short-term crop loans through state cooperative institutions, including cooperative banks and primary agricultural cooperative credit societies.
• Timeframe: Loans must have been disbursed within the specific window of May 1, 2025, to March 31, 2026.
• Inclusions: The framework extends to multi-borrowing accounts (per individual or family) and pensioners drawing under ₹10,000 monthly.
• Repayment status: Farmers who settled their loans in full before the scheme was announced, remain eligible for benefits under the scheme.

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