Chennai (Tamil Nadu) [India], May 26 (ANI): Tamil Nadu Chief Minister Vijay on Monday announced a waiver of crop loans up to Rs 50,000 for marginal farmers who borrowed from cooperative banks. He further said that larger farmers who have availed crop loans through cooperative banks will receive a relief of Rs 5,000.

The scheme is expected to benefit 1,422,000 farmers and will result in an additional government expenditure of Rs 2,044.46 crore.

Reflecting on the scale of the relief package, TVK leader and Tamil Nadu minister CTR Nirmalkumar, while talking to the reporters, said, 'Around 1,692,000 farmers have got the agricultural loans, out of which 1,422,000 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 the Minister for Agriculture and Farmers Welfare, R. Vinoth; the Minister for Cooperation, V. Kanthiraj; the 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 Rs.50,000/- obtained through cooperative banks for small farmers'

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

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

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

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

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

https://x.com/CMOTamilnadu/status/2058890821148233829?s=20

'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. Considering the current financial position and financial resources of the state government, and 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)