In a major relief measure aimed at easing the financial burden on farmers, Tamil Nadu Chief Minister C Joseph Vijay on Monday (May 25) announced a cooperative bank crop loan waiver scheme that is expected to benefit more than 14 lakh farmers across the state.
Under the scheme, marginal farmers with outstanding crop loans of up to Rs 50,000 taken from cooperative banks between May 2025 and February 2026 will receive a complete waiver. Larger farmers, meanwhile, will be given a flat relief of Rs 5,000 towards their loan repayment.
Big relief for marginal farmers
Announcing the decision on Monday, Vijay said the move was intended to support farmers struggling with agricultural debt and rising cultivation costs.
According to the state government, the waiver will cover crop loans availed through cooperative banks during the specified period, with the state expected to spend nearly Rs 2,044 crore on the scheme. Officials said around 14.22 lakh farmers are likely to benefit from the announcement.
What the scheme offers
The loan relief package has been divided into two categories: Marginal farmers with pending cooperative crop loans of up to Rs 50,000 will receive a full waiver and other categories of farmers will receive a fixed relief amount of Rs 5,000.
The government, however, has not yet announced the implementation timeline or detailed operational guidelines for the scheme.
Focus on cooperative banking sector
Tamil Nadu has traditionally relied heavily on cooperative banks for agricultural credit distribution, especially among small and marginal farmers who often struggle to access formal banking finance.
By targeting cooperative crop loans specifically, the government appears to be focusing relief on farmers considered most vulnerable to debt stress.
Further details regarding eligibility checks, waiver processing and fund allocation are expected to be announced by the state government in the coming days.