Tamil Nadu extends crop loan waiver period ahead of Diwali
The TVK government has sanctioned an additional Rs 2,842.77 crore to expand the scope of its crop loan waiver scheme.
The Tamil Nadu government, led by C Joseph Vijay, on Saturday extended its crop loan waiver scheme by one month. According to The New Indian Express, the state has sanctioned an additional Rs 2,842.77 crore to provide relief of up to Rs 75,000 to eligible farmers.
The revised scheme covers crop loans taken from cooperative societies between May 1, 2025, and March 31, 2026. This extends the previous cut-off date of February 28, 2026, by one month. Under the new rules, farmers with loans up to Rs 75,000 will receive a full waiver, while those with loans exceeding Rs 75,000 are eligible for a waiver of up to Rs 75,000.
The Hindu reported that the total estimated expenditure for the expanded scheme is Rs 9,062.83 crore. Of this, Rs 6,220.056 crore has already been released. The government authorised the release of the remaining Rs 2,842.774 crore, which includes Rs 2,562.774 crore for principal and Rs 280 crore for interest.
The scheme includes 10,810 farmers who had already repaid their loans in full. It also covers pensioners with a monthly pension under Rs 10,000 and farmers with multiple loans taken individually or by family members. The government estimates that approximately 13.25 lakh farmers will qualify under the revised classification.
While several farmers' organisations welcomed the extension, they urged the TVK government to fulfil its election promise of a full waiver. They also requested relief for those who borrowed before 2025 and the declaration of Cauvery delta districts as drought-affected.