Tobacco Board enhances interest-free loans under Growers’ Welfare Scheme

The Tobacco Board has increased the interest-free loans offered under its Growers’ Welfare Scheme for various purposes, including medical treatment, marriage of daughters, education, and repair of damaged barns.

According to a circular dated July 22, 2026, addressed to all Regional Managers and Auction Superintendents in Andhra Pradesh and Karnataka, the administration has enhanced not just the interest-free loans but also the death grant. A similar enhancement — from ₹50,000 to ₹1,00,000 — has been made for the marriage of daughters and the education of dependent children of growers.

For repair of barns damaged by natural calamity or fire, the loan amount has been climbed from ₹20,000 to ₹40,000 for partial damage, and from ₹50,000 to ₹1,00,000 for full or heavy damage.

The circular also spells out the recovery period and instalment schedule for these interest-free loans. The ₹1,00,000 loan for children’s education will be recovered in five equal annual instalments of ₹20,000 over five years. The loan for partial damage to barns will be recovered in three instalments — ₹10,000 each in the first and second years, and ₹20,000 in the third year.

All other loans — for marriage of daughters, major illness, and heavy damage to barns — will be recovered over three years, with an instalment of ₹20,000 in the first year and ₹40,000 each in the second and third years.

The Tobacco Board has also raised the annual fee payable by every registered member from ₹500 to ₹1,325.