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He had borrowed over Rs 2 lakh from the Peravoor branch of Kannur District Co-operative Bank.
Parappallil Thomas is the third farmer to kill self in Kerala in the past few weeks.
The Minister added that the government has engaged in discussions with three banks to understand the issues faced by Prasad, the farmer from Thakazhi.
He had to move out of his 2.20 acres of land on the fringes of the forest because of frequent wild elephant raids.
Initially, Prasad indulged in sand harvesting, but following a ban on the activity, he soon turned to agriculture.
The deceased farmer who was a BJP activist had consumed poison on Friday night.
The governor accused the government of extravagance in the name of celebrations when farmers in the state are struggling.
K G Prasad, a farmer based in Thakazhi, has left a suicide note in which he accused the State Government and certain banks of pushing him to the brink.
Sheeba George said the district administration would be lenient toward those without homes.
Sreesanth was under pressure from the financial institutions for the past few days after he defaulted on repyaing loan, say relatives.