The Tamil Nadu government, headed by Chief Minister C. Joseph Vijay on Monday (May 25, 2026) announced a waiver on loans up to ₹50,000, availed by small and marginal farmers from cooperative banks since May last year.

Loans up to ₹50,000 obtained by marginal farmers will be completely waived. For small farmers, 50% of the loan within this limit will be waived. Marginal farmers who borrowed ₹50,000-₹60,000 will receive a waiver of ₹40,000, and small farmers in the same bracket ₹20,000.

As the loan amount increases, the quantum of the amount waived will decrease. Small and marginal farmers who borrowed more than ₹1 lakh will be provided a flat waiver of ₹5,000. Besides, other large-scale farmers who obtained crop loans through cooperative banks will receive a uniform waiver of ₹5,000 each.

The government said 14,22,555 farmers who availed crop loans from cooperative banks between May 1, 2025, and February 28, 2026, will benefit from this scheme, imposing an additional expenditure of ₹2,044.46 crore on the government.