Police said the body of the woman was found at her home in Karattupalayam near here three days ago with her head smashed with a stone.
Yesterday, two persons surrendered before the Village Administrative Officer at Aavudaiyaparai, stating they had murdered the woman.
The two were arrested and told police that they decided to do away with the woman as she asked them to return the money borrowed from her, police said.
They were remanded in judicial custody last night.