TN CM Announces Full Cooperative Farm Loan Waiver Up to Rs 75,000 in Assembly

Tamil Nadu Chief Minister C Joseph Vijay on Monday announced a full waiver of cooperative farm loans up to Rs 75,000 in the Legislative Assembly in Chennai. The government also extended relief for higher loan brackets, committing an additional Rs 953.06 crore despite ongoing financial constraints.

Making the announcement under Rule 110 in the Assembly, the Chief Minister stated that loans between Rs 75,000 and Rs 1 lakh will receive waivers of up to Rs 75,000. For cooperative agricultural loans exceeding Rs 1 lakh, the government has approved a maximum waiver of Rs 35,000.

Emphasising that agriculture remains the backbone of the state and that national prosperity relies on supporting farmers, the Chief Minister outlined the expanded relief framework. The fresh announcement followed consultations held with agricultural unions on August 7, 2026. He noted that the decision was taken despite the state facing financial constraints and adhering to Reserve Bank of India guidelines requiring rapid settlements with cooperative banks.

The initiative adds Rs 953.06 crore in government commitments to assist more than 1.38 lakh farmers. With this expansion, the cumulative farm loan waiver by the administration reaches Rs 6,220 crore, benefiting a total of 13.34 lakh farmers across Tamil Nadu.

Recalling earlier measures, the Chief Minister said the government had initially waived agricultural loans up to Rs 50,000 within 15 days of assuming office in May. That measure was subsequently expanded to provide full waivers for loans up to Rs 75,000 and a Rs 35,000 waiver for amounts exceeding Rs 75,000, which had benefited more than 14.44 lakh farmers.