The Tamil Nadu government has released an additional Rs 2,842.77 crore to expand the 2026 crop loan waiver scheme, extending the eligibility period by one month to cover farmers who obtained loans from cooperative institutions between May 1, 2025 and March 31, 2026.

According to a Government Order (GO) issued by the Cooperation, Food and Consumer Protection Department on Nov. 6, a total of 13,24,882 farmers are expected to benefit from the revised scheme, involving an estimated expenditure of Rs 9,062.83 crore.

Under the revised guidelines, crop loans up to Rs 75,000 will be waived in full for 5,90,621 farmers. Those who borrowed more than Rs 75,000 will receive a waiver of up to Rs 75,000 each, benefiting another 7,34,260 farmers.

The government has so far released Rs 6,220.056 crore towards the scheme. The latest allocation of Rs 2,842.774 crore will meet the remaining requirement.

The expanded scheme also covers around 10,810 farmers who had fully repaid their crop loans before June 19, 2026, making them eligible for a waiver benefit of Rs 15.62 crore, subject to the prescribed conditions.

Further, the government has provided for waiver of eligible overdue interest, excluding the one per cent penal interest, and reimbursement of interest already paid by farmers who have cleared their outstanding loans. Provisions have also been made for eligible loans involving multiple borrowings by an individual or members of the same family, besides pensioners receiving less than Rs 10,000 a month.

Farmers who have received partial loan waivers must settle the remaining eligible loan amount by November 30, 2026, to regularise their accounts and become eligible for fresh crop loans. Those whose repayment dates fall after November 30 must clear the balance within the prescribed repayment period.


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