CHENNAI: A day ahead of Deepavali, the TVK government on Saturday brought cheer to the farming community by expanding the scope of its crop loan waiver scheme. According to a G.O., the government has sanctioned an additional Rs 2,842.77 crore, extending relief of up to Rs 75,000 to eligible farmers who obtained crop loans from co-operative societies between May 1, 2025, and March 31, 2026.
The move extends the period for eligible crop loans by one month, from February 28, 2026, to March 31, 2026, and removes the earlier distinction in waiver limits for borrowers with larger loans.
Under the latest revision of the scheme, the entire loan amount will be waived for eligible farmers who borrowed up to Rs 75,000, while those who borrowed over Rs 75,000 will receive a waiver of up to Rs 75,000. The government estimates that crop loans amounting to Rs 8,312.21 crore taken by approximately 13.25 lakh farmers will qualify under the revised classification.
The expanded scheme also provides for relief to certain farmers who had already repaid their loans, reimbursement of eligible interest payments, relief in cases involving multiple crop loans taken by the same farmer or by different members of the same family, and eligible crop loans obtained by pensioners receiving less than Rs 10,000 a month.
The total estimated expenditure on the expanded scheme is `9,062.83 crore. The G.O. said Rs 6,220.056 crore has already been released and authorised the release of the balance Rs 2,842.774 crore, comprising Rs 2,562.774 crore towards principal and Rs 280 crore towards interest.
The scheme was first revised on June 16, providing a full waiver for eligible loans of up to `75,000 and a waiver of `35,000 for loans exceeding that amount. Later, on August 17, the CM announced an enhanced waiver of up to Rs 75,000 for farmers with loans ranging from Rs 75,000 to Rs 1 lakh.
Several farmers’ organisations across the state welcomed the extension but urged the TVK to fulfil its election promise of a full waiver. They sought relief for farmers who had borrowed before 2025 and those who had already repaid their loans, besides the declaration of Cauvery delta districts as drought-affected.