Tamil Nadu approves loan waiver for 1.4 million farmers

The Tamil Nadu government announced a significant loan waiver for farmers on Monday, a move officials said will provide financial relief to over 1.4 million people. Chief Minister C. Joseph Vijay approved the measure following a review meeting at the state secretariat.

The policy provides a complete waiver for crop loans up to 50,000 rupees taken by marginal farmers from cooperative banks. Small farmers will receive a 50 percent waiver on loans within the same 50,000-rupee ceiling. For large farmers who have taken crop loans up to 1 lakh rupees, the government will waive 5,000 rupees per farmer. The initiative applies to loans obtained between May 1 of last year and February 28 of this year.

According to an official government release, the decision will result in an additional expenditure of 2,044.46 crore rupees for the state. The release stated the Chief Minister considered the state's current financial position and resources in making the determination. Officials said the waiver would benefit farmers wishing to take loans for the upcoming cultivation season.

The announcement fulfills a campaign promise made by the Chief Minister's party ahead of the recent state assembly...