The Maharashtra government has announced a waiver of farm loans up to ₹2 lakh (approximately $2,400 USD), fulfilling a poll promise aimed at aiding farmers. This initiative is expected to benefit around 5 million farmers with outstanding crop loan dues until September 30, 2025. The government has allocated ₹20,000 crore for the waiver and ₹15,000 crore for incentives to encourage timely repayments. However, analysts express concerns that such waivers could lead to increased non-performing assets (NPAs) in the agricultural sector, as borrowers may lack sufficient motivation to repay loans. Suresh Ganapathy, head of financial services research at Macquarie Capital Securities, noted that previous waivers have historically resulted in rising NPAs, as seen when SBI's farm NPAs surged from 6% in 2017 to 16% in FY20 following similar announcements. Nitin Aggarwal from Motilal Oswal highlighted that while the waiver might reduce overdue amounts in the short term, the long-term implications on credit culture and repayment trends warrant close observation. Additionally, India Ratings & Research cautioned that the proposed law could disrupt operations and weaken credit discipline among microfinance institutions.