Tamil Nadu government has rolled out a revised Crop Loan Waiver Scheme in 2026, covering cooperative bank loans taken by farmers between May 2025 and February 2026. This fresh announcement, made by Chief Minister C. Joseph Vijay, replaces the earlier Kisan Karj Mafi Yojana that was declared in the state's 2022 Budget.
Under the revised package, crop loans up to Rs. 75,000 get a full waiver, and loans above this limit get a fixed waiver of Rs. 35,000. Around 14.43 lakh farmers stand to gain from this, and the scheme will cost the state exchequer Rs. 5,932.23 crore.
TN Farm Loan Waiver Scheme List and Status Check 2026
Farmers who took crop loans from Primary Agricultural Cooperative Credit Societies (PACCS), District Central Cooperative Banks (DCCBs) or the Tamil Nadu State Apex Cooperative Bank between 1 May 2025 and 28 February 2026 are covered under this waiver. No separate application is required for this waiver, as the cooperative bank credits the waiver amount directly to the eligible loan account. Farmers can still confirm their status by visiting their branch or checking their loan passbook.
STEP 1 - Visit the Primary Agricultural Cooperative Credit Society (PACCS) or District Central Cooperative Bank (DCCB) branch where the crop loan was taken.
STEP 2 - Carry the loan account passbook and Aadhaar card, and ask the branch staff to check whether the waiver has been credited to the account.
STEP 3 - For updates and official notifications on this scheme, farmers can also check the Tamil Nadu Cooperation, Food and Consumer Protection Department website at cooperation.tn.gov.in.
STEP 4 - If the loan account does not reflect the waiver even after the scheme rollout, farmers can raise the matter with the branch manager or the district cooperative office for correction.
2026 Cooperative Crop Loan Waiver - What Changed
Chief Minister Vijay first announced a waiver of up to Rs. 50,000 for small and marginal farmers on 25 May 2026, soon after the new government took charge. This was later revised and expanded on 16 June 2026 to cover all categories of farmers, marginal, small and large, with a higher waiver limit.
Here is a quick look at how the revised scheme is structured:-
- Crop loans up to Rs. 75,000 taken from cooperative banks between 1 May 2025 and 28 February 2026 get a full waiver, regardless of farmer category.
- Crop loans above Rs. 75,000 get a fixed waiver of Rs. 35,000, and the remaining loan amount stays with the farmer.
- Coverage includes 8.34 lakh marginal farmers, 5.16 lakh small farmers and 93,548 large farmers, taking the total to 14.43 lakh beneficiaries.
- Total outlay for this waiver package works out to Rs. 5,932.23 crore, borne by the Tamil Nadu government.
Earlier Kisan Karj Mafi Yojana 2022 - Background
Before this 2026 revision, Tamil Nadu had announced a farm loan waiver in its 2022-23 Budget. That package set aside Rs. 2,531 crore for waiving agricultural loans, along with Rs. 1,000 crore for jewel loan waivers and Rs. 600 crore for self-help group loan waivers, a total of Rs. 4,131 crore. That scheme has since run its course, and the 2026 cooperative crop loan waiver is the scheme currently active for farmers.
| Detail | Information |
|---|---|
| Scheme Name | Tamil Nadu Cooperative Crop Loan Waiver Scheme 2026 (Kisan Karj Mafi Yojana) |
| Announced By | Chief Minister C. Joseph Vijay, Government of Tamil Nadu |
| Beneficiaries | Marginal, small and large farmers of Tamil Nadu with cooperative bank crop loans |
| Loan Period Covered | 1 May 2025 to 28 February 2026 |
| Waiver Amount | Full waiver up to Rs. 75,000, and Rs. 35,000 for loans above this amount |
| Total Beneficiaries | 14.43 lakh farmers |
| Total Outlay | Rs. 5,932.23 crore |
| Application Mode | Automatic, credited by the cooperative bank, no online application needed |
| Official Website | cooperation.tn.gov.in |
Eligibility for Tamil Nadu Crop Loan Waiver Scheme
Eligibility for this waiver is fairly wide, since the 2026 revision extended coverage from just marginal and small farmers to every category. Broadly, a farmer needs to fall under these conditions to get the benefit.
- Farmer should have taken a crop loan from a Primary Agricultural Cooperative Credit Society, District Central Cooperative Bank, or the Tamil Nadu State Apex Cooperative Bank.
- Loan should have been taken between 1 May 2025 and 28 February 2026 to fall within the covered period.
- Marginal farmers (up to 2.5 acres), small farmers (2.5 to 5 acres) and large farmers holding bigger land parcels are all covered under the revised scheme.
- Loan account should be active and linked to the farmer's own name and land records with the cooperative bank.
Documents to Keep Ready
Since the waiver gets credited automatically, farmers do not need to submit fresh documents to a portal. Still, it helps to keep these documents handy while visiting the bank branch for verification.
- Aadhaar Card
- Loan Account Passbook
- Land Ownership Documents
- Bank Account Details
- Mobile Number Linked to Aadhaar
Farmers looking for other central support can also check the Pradhan Mantri Fasal Bima Yojana for crop insurance cover, or the Tamil Nadu Tatkal Scheme for a free power connection.
FAQ's
Is TN Farm Loan Waiver Scheme 2022 still active?
No, the 2022 Budget waiver was a one-time package and has run its course. Farmers with cooperative bank loans now fall under the 2026 revised waiver scheme instead.
Do farmers need to apply online for the 2026 waiver?
No separate online application is needed. Cooperative banks credit the waiver amount directly to eligible loan accounts based on bank records.
What if a loan amount is above Rs. 75,000?
Such loans get a fixed waiver of Rs. 35,000, and the farmer needs to repay the remaining balance as per the normal loan schedule.
Source / Reference Link: https://www.deccanherald.com/india/tamil-nadu-rolls-out-rs-12110-crore-crop-loan-waiver-scheme-950792.html