Tamil Nadu Chief Minister C. Joseph Vijay announced a major expansion of the state's crop loan waiver scheme on June 17, 2026, raising the full waiver limit from ₹50,000 to ₹75,000 for cooperative bank crop loans. The enhanced scheme is set to benefit 14.43 lakh farmers across Tamil Nadu at an estimated government expenditure of ₹5,932 crore — fulfilling a core TVK election promise and responding directly to demands from farmers' organisations who argued that the previous ₹50,000 ceiling left many borrowers without adequate relief.
| Loan Outstanding | Waiver Amount |
|---|---|
| Up to ₹75,000 | Full Waiver (100%) |
| ₹75,001 – Any amount | ₹35,000 flat relief |
| Eligible period | May 1, 2025 – Feb 28, 2026 |
| Total beneficiaries | 14.43 lakh farmers |
| Government spend | ₹5,932 crore |
| Eligible loans | Cooperative bank crop loans only |
Who Benefits?
The scheme covers crop loans taken from cooperative banks between May 1, 2025 and February 28, 2026. According to official estimates, the beneficiary breakdown is:
- 8.33 lakh marginal farmers — waivers and relief worth ₹3,599.67 crore
- 5.16 lakh small farmers — benefit totalling ₹1,995.42 crore
- 93,548 other farmers — receiving ₹35,000 relief each
Context — The Revision Story
The TVK government had announced an initial crop loan waiver on May 25, 2026, covering loans up to ₹50,000 for small and marginal farmers — benefiting 14.22 lakh farmers at a cost of ₹2,044 crore. However, farmers' organisations and several political parties immediately pushed back, pointing out that a large number of cultivators with outstanding loans between ₹50,000 and ₹1 lakh were left without meaningful relief. Following review meetings at the Secretariat, CM Vijay announced the enhanced package within weeks — raising the full waiver ceiling by 50%, to ₹75,000.
Disbursement Timeline
Per Reserve Bank of India Model Operating Procedures for government loan waiver schemes, the full amount must be disbursed to cooperative banks within 45 to 60 days of the announcement. The government has stated that funding has been planned to protect both farmers and the financial institutions participating in the programme. The announcement comes weeks before the Budget session (expected July 2026), where more comprehensive agricultural support measures are anticipated.