TN CM Vijay waives loans up to INR 50,000 for marginal farmers; 14.22 lakh to benefit

TN CM Vijay waives loans up to INR 50,000 for marginal farmers; 14.22 lakh to benefit

Chennai (Tamil Nadu) [India], May 26 (HBTV): Tamil Nadu Chief Minister Vijay on Monday announced a waiver of crop loans up to INR 50,000 for marginal farmers who borrowed from cooperative banks.

He further said that larger farmers who availed crop loans through cooperative banks will receive a relief of INR 5,000.

The scheme is expected to benefit 14.22 lakh farmers and will result in an additional government expenditure of INR 2,044.46 crore.

Reflecting on the scale of the relief package, TVK leader and Tamil Nadu minister CTR Nirmalkumar, while speaking to reporters, said, ‘Around 16.92 lakh farmers have got agricultural loans, out of which 14.22 lakh farmers’ loans have been waived off today. This was one of our election promises.’

Earlier, a review meeting regarding the crop loan waiver for farmers was held on Monday at the Secretariat under the leadership of Chief Minister Vijay.

The meeting was attended by Minister for Agriculture and Farmers Welfare R. Vinoth, Minister for Cooperation V. Kanthiraj, Minister for Finance, Planning and Development N. Maria Wilson, and other department officials.

In a post on X, the Chief Minister’s Office said, ‘Honourable Tamil Nadu Chief Minister Thiru. M.K. Stalin announces full waiver of crop loans up to INR 50,000 obtained through cooperative banks for small farmers.’

In a statement, the government said that marginal farmers with outstanding loans below INR 50,000 will receive a full waiver. For small farmers with debts under INR 50,000, 50 per cent of the loan amount will be waived.

For loans exceeding INR 50,000, relief will be provided on a graded basis. Borrowers with loans between INR 50,001 and INR 60,000 will get a waiver of INR 40,000, while those in the INR 60,001 to INR 70,000 bracket will receive INR 30,000.

Farmers with loans between INR 70,001 and INR 80,000 will be granted an INR 20,000 waiver.

For loans ranging from INR 80,001 to INR 1 lakh, the waiver has been fixed at INR 10,000, while those with loans above INR 1 lakh will receive a relief of INR 5,000.

The waiver covers farmers who borrowed between May 1, 2025 and February 28, 2026.

‘In accordance with the guidelines of the Reserve Bank of India’s model operating procedures for government debt waiver schemes dated November 28, 2025, which state that the total amount for crop loan waiver must be paid in full by the government within 45 to 60 days, and considering the current financial position and financial resources of the state government in the present difficult situation, the Chief Minister has ordered the waiver of crop loans obtained by farmers from cooperative banks from May 1, 2025 to February 28, 2026,’ an official statement said.

(ANI)