CHENNAI: Even after the Tamil Nadu government increased the ceiling for collateral-free crop loans from Rs 1.60 lakh to Rs 2 lakh with effect from January 1, 2025, several cooperative societies across the state are allegedly providing lower amounts to farmers.

Many cultivators have also complained that only those who had borrowed in the previous year are being considered for fresh loans this season, while first-time applicants are being denied.

The revised ceiling allows eligible farmers to avail interest-free crop loans up to Rs 2 lakh through Primary Agricultural Cooperative Banks (PACS), repayable within 12 months. However, farmers’ associations have raised concerns that a number of societies in districts such as Tiruppur and Coimbatore are issuing loans capped below the old limit, f

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