From Rs 50,000 To Rs 75,000: Vijay Expands Tamil Nadu’s Farm Loan Waiver

Tamil Nadu Chief Minister C Joseph Vijay on Monday announced additional loan relief for farmers, including a full waiver of cooperative farm loans up to Rs 75,000 and a waiver of up to Rs 75,000 for loans between Rs 75,000 and Rs 1 lakh.

Announcing the decision under Rule 110 in the Assembly, Vijay said it would provide additional support to more than 1.38 lakh farmers and involve an additional financial commitment of Rs 953.06 crore, according to PTI. Vijay said the relief was being extended despite the state’s financial constraints and Reserve Bank of India guidelines that require rapid settlements with cooperative banks.

Vijay said agriculture was the backbone of the state and that the prosperity of the nation depended on supporting farmers. He said the government had decided to extend the additional assistance despite the financial constraints.

The government had earlier waived agricultural loans up to Rs 50,000 within 15 days of Vijay taking office in May. The relief was later expanded to cover loans up to Rs 75,000 in full, along with a Rs 35,000 waiver for loans exceeding Rs 75,000. According to PTI, the earlier measures benefited more than 14.44 lakh farmers.

Following consultations with agricultural unions on August 7, 2026, the government decided to extend further relief, Vijay said.

Under the revised relief package, cooperative farm loans up to Rs 75,000 will receive a 100 per cent waiver. Loans between Rs 75,000 and Rs 1 lakh will receive a waiver of up to Rs 75,000, while loans above Rs 1 lakh will be eligible for a maximum waiver of Rs 35,000.

"This initiative will provide additional support to over 1.38 lakh farmers, representing an additional financial commitment of approximately Rs 953.06 crore by the government, with a total waiver amount reaching Rs 6,220 crore for 13.34 lakh farmers," the CM said.

(With inputs from PTI)