Tamil Nadu Announces Fresh Farm Loan Relief Of Up To Rs 75,000

Tamil Nadu Chief Minister C Joseph Vijay, on Monday, announced a fresh waiver package for cooperative farm loans, with the highest additional relief available to borrowers with loans between Rs 75,000 and Rs 1 lakh.

Loans Above Rs 75,000 Get Higher Relief

Under the revised arrangement, borrowers with crop loans of up to Rs 75,000 will get a full waiver. Those with loans above Rs 75,000 and up to Rs 1 lakh will be eligible for a waiver of up to Rs 75,000.

For loans exceeding Rs 1 lakh, the waiver will be capped at Rs 35,000.

The announcement was made under Rule 110 during the Tamil Nadu Assembly session.

Around 2,38,264 farmers who have taken crop loans between Rs 75,000 and Rs 1 lakh will be eligible for a waiver of up to Rs 75,000. For these borrowers, the additional relief can go up to Rs 40,000 over the amount available under the earlier arrangement.

Additional Rs 953.06 Crore Allocation

The new measures will require an additional government allocation of Rs 953.06 crore, according to the announcement.

The latest relief builds on a series of loan waivers introduced after the government took office in May. The initial measure covered agricultural loans up to Rs 50,000. The coverage was subsequently extended, with full waivers available for loans up to Rs 75,000 and a Rs 35,000 waiver for loans above that level.

The earlier measures covered more than 14.44 lakh farmers, according to the government.

The latest decision came after consultations with agricultural unions on 7 August 2026. The government also referred to its financial position and the Reserve Bank of India (RBI) rules governing the settlement of dues to cooperative banks. Under those requirements, reimbursements to cooperative banks have to be made within 45 to 60 days.

Total Waiver To Reach Rs 6,220 Crore

The government estimates that the latest measures will provide additional support to more than 1.38 lakh farmers.

With the new relief included, the total waiver is projected to reach around Rs 6,220 crore for 13.34 lakh farmers.

The revised loan slabs are:

• Up to Rs 75,000: 100 per cent waiver

• Above Rs 75,000 to Rs 1 lakh: Waiver of up to Rs 75,000

• Above Rs 1 lakh: Waiver of up to Rs 35,000