Tamil Nadu Expands Cooperative Crop Loan Waiver to ₹75,000

Tamil Nadu announced a revised cooperative crop loan waiver scheme for farmers who borrowed from cooperative banks between 1 May 2025 and 28 February 2026. The scheme covers full waiver for crop loans up to ₹75,000 and a partial waiver of ₹35,000 for loans above that limit.

Cooperative Credit Structure in Tamil Nadu

Tamil Nadu has a cooperative credit network that includes primary agricultural cooperative banks, district central cooperative banks, and the Tamil Nadu State Apex Cooperative Bank. Cooperative banks in India function under the Banking Regulation Act, 1949, and they are regulated by the Reserve Bank of India and supervised in part by state cooperative departments. Crop loans are short-term agricultural loans used for seasonal cultivation expenses such as seeds, fertilisers, labour, and irrigation. In India, crop loans are commonly linked to the Kisan Credit Card system, which was introduced in 1998 for timely agricultural credit.

Revised Waiver Structure

The revised waiver applies to farmers who took cooperative crop loans during the specified period from 1 May 2025 to 28 February 2026. Farmers with loans up to ₹75,000 will receive a full waiver, while farmers with loans above ₹75,000 will receive a waiver of ₹35,000. The earlier announcement on 25 May 2026 had proposed a waiver of up to ₹50,000 for small and marginal farmers. The revised scheme extends the benefit to all farmers covered under the cooperative loan category.

Beneficiary Categories and Financial Outlay

The scheme is expected to cover about 14.43 lakh farmers, or 1,443,504 farmers, across Tamil Nadu. The estimated fiscal burden on the state government is ₹5,932.23 crore.

• 8.33 lakh marginal farmers are set to receive waivers worth ₹3,599.67 crore.
• 5.16 lakh small farmers are set to receive waivers worth ₹1,995.42 crore.
• 93,548 large farmers are set to receive waivers worth ₹337.15 crore.
• Crop loan waivers are a form of agricultural debt relief used by state governments in India.

Important Facts for Exams

• Cooperative banks in India are governed by the Banking Regulation Act, 1949.
• The Kisan Credit Card scheme was launched in 1998 for agricultural credit.
• Marginal farmers in India are generally defined as farmers owning less than 1 hectare of land.
• Small farmers in India are generally defined as farmers owning between 1 and 2 hectares of land.

Tamil Nadu is one of the major states in India with a large cooperative banking network. Crop loan waivers are usually announced through state budgets or special government orders.