Tamil Nadu Chief Minister C Joseph Vijay on Monday announced a full waiver of cooperative farm loans up to ₹75,000.
For crop loans from ₹75,000 to ₹1,00,000, a waiver of up to ₹75,000 will be provided,” Vijay said during the Tamil Nadu Assembly session.
For crop loans above ₹1 lakh, the Tamil Nadu government will provide a waiver of up to ₹35,000.
“Through this measure, 2,38,264 farmers who have obtained crop loans between ₹75,000 and ₹1,00,000 will receive a waiver of up to ₹75,000 each,” he said.
This was later expanded to provide full waivers for loans up to ₹75,000, and a ₹35,000 waiver for loans exceeding ₹75,000, benefiting over 14.44 lakh farmers.
Tamil Nadu Chief Minister C Joseph Vijay on Monday announced a full waiver of cooperative farm loans up to ₹75,000. Additionally, he announced a waiver of ₹75,000 on all farm loans up to ₹1 lakh.
“Crop loans of up to ₹75,000 will be completely waived by 100%. For crop loans from ₹75,000 to ₹1,00,000, a waiver of up to ₹75,000 will be provided,” Vijay said during the Tamil Nadu Assembly session.
For crop loans above ₹1 lakh, the Tamil Nadu government will provide a waiver of up to ₹35,000.
“Through this measure, 2,38,264 farmers who have obtained crop loans between ₹75,000 and ₹1,00,000 will receive a waiver of up to ₹75,000 each,” he said. “As a result, they will have the opportunity to receive an additional waiver of up to ₹40,000, over and above the waiver they have already received.”
‘Farmers are our lifeline’ Vijay emphasised that agriculture is the backbone of the state and that the nation's prosperity depends on supporting farmers, and said, “If the people of Tamil Nadu are our life, then farmers are our lifeline... Protecting the livelihoods of farmers, reducing their debt burden and strengthening agriculture are among the foremost responsibilities of this government.”
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‘Financial burden on govt, but…’ Vijay said that despite the state's financial constraints, his government has decided to extend additional support of ₹953.06 crore to farmers.
Making an announcement under Rule 110 in the Assembly, Vijay said the government previously waived agricultural loans up to ₹50,000 within 15 days of taking office in May.
This was later expanded to provide full waivers for loans up to ₹75,000, and a ₹35,000 waiver for loans exceeding ₹75,000, benefiting over 14.44 lakh farmers.
Following consultations with agricultural unions on 7 August 2026, the government decided to provide additional relief despite current financial constraints and Reserve Bank of India guidelines that required rapid settlements with cooperative banks — full reimbursement to cooperative banks within 45 to 60 days — the chief minister said, announcing additional benefits.
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Who gets what? As per Vijay's announcement:
Cooperative farm loans up to ₹ 75,000 will now be provided with a 100 per cent waiver
75,000 will now be provided with a 100 per cent waiver Loans between ₹ 75,000 and ₹ 1 lakh will receive up to ₹ 75,000 in waivers
75,000 and 1 lakh will receive up to 75,000 in waivers Loans above ₹ 1 lakh will receive a maximum waiver of ₹ 35,000. "This initiative will provide additional support to over 1.38 lakh farmers, representing an additional financial commitment of approximately ₹953.06 crore by the government, with a total waiver amount reaching ₹6,220 crore for 13.34 lakh farmers," the CM said.
