Tamil Nadu Farm Loan Waiver 2026: Check Who Will Get Full & Partial Loan Relief Under CM Vijay’s Announcement

Tamil Nadu has expanded its cooperative farm loan waiver, taking the total value of agricultural debt relief to Rs 6,220 crore. The decision was announced by Chief Minister C Joseph Vijay in the state Assembly following continued demands from farmers' organisations for broader relief.

Tamil Nadu Farm Loan Waiver Expanded to Rs 6,220 Crore: Check Who Will Get Full and Partial Relief

Under the revised scheme, cooperative farm loans of up to Rs 75,000 will be completely waived. For loans between Rs 75,000 and Rs 1 lakh, the government will provide relief of up to Rs 75,000. For borrowers with loans exceeding Rs 1 lakh, the maximum waiver will be Rs 35,000.

The expanded waiver will require an additional Rs 953.06 crore from the Tamil Nadu government. Around 2.38 lakh farmers are expected to benefit, with the average relief estimated at about Rs 40,000 per borrower.

With the latest addition, the government says the total farm loan waiver will cover loans worth Rs 6,220 crore for 13.34 lakh farmers. The government had already cleared loans amounting to Rs 5,267 crore for 13.34 lakh farmers as of July 31.

The announcement was made under Rule 110 of the Tamil Nadu Assembly. Chief Minister Vijay also said the state would have to settle the amount owed to cooperative banks within 45 to 60 days, citing a Reserve Bank of India directive dated November 28 last year.

How Tamil Nadu New Farm Loan Waiver Works

The revised structure is based on the outstanding loan amount. Farmers with smaller cooperative loans receive the highest level of relief, while those with larger loans face a fixed ceiling.

For example, a farmer with a cooperative loan of Rs 60,000 would have the entire amount waived. A borrower with a loan of Rs 90,000 could receive relief of up to Rs 75,000. However, a farmer owing more than Rs 1 lakh would receive a maximum waiver of Rs 35,000 under the new structure.

This means the benefit will not be the same for every farmer. The amount of debt remaining after the waiver will depend on the original outstanding loan and the applicable waiver limit.

The 45-to-60-day repayment requirement makes the timing particularly important. Tamil Nadu will have to arrange the funds and transfer the money to cooperative banks within the specified period while continuing to meet its other spending commitments.

Tamil Nadu Farmers' Organisations Say Loan Waiver Is Not Enough

Despite the size of the announcement, several farmers' groups have criticised the revised relief package. Their argument is that the additional waiver covers only a limited section of farmers and does not fully address the demands raised during months of protests and discussions with the government.

TN Farmers' Association general secretary P S Masilamani said the announcement had once again disappointed farmers. He argued that farmers had temporarily stopped their agitation after being given assurances that their demands for a wider waiver would be considered.

Farmers' organisations have indicated that protests could resume across Tamil Nadu if their demands are not addressed. Their criticism shows that the size of the government's financial commitment has not necessarily translated into satisfaction among all affected borrowers.

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