The crop loan waiver is expected to benefit around 40.5 lakh farmers. The Telangana government on Tuesday issued a government notification waving all agricultural farm loans up to Rs 1 lakh of all farmers in the state. All loans taken by farmers in the state as on March 31, 2014, have been waived. The government, in its order, stated that crop loans are being waived to break the cycle of farmers taking credit from money lenders to pay loans to banks. The crop loan waiver scheme will cover short-term loans taken against gold by scheduled commercial banks, cooperative credit institutions including urban cooperative banks and regional rural banks. All crop loans sanctioned or renewed on or after April 1, 2014, and outstanding as on December 11, 2018, are eligible for the crop loan waiver scheme, the government order stated. The crop loan waiver is expected to benefit around 40.5 lakh farmers and an estimated total crop loan amount of Rs 30,000 crore, notwithstanding the interest amount of Rs 2,000 crore.