If the government announces a loan waiver, does my KCC loan automatically get cancelled?

A loan waiver is rarely automatic and never instant, so do not stop monitoring your account. After an announcement the state issues detailed guidelines that fix a cut-off date, an upper limit on the amount waived, and eligibility conditions such as the loan being a crop loan that was outstanding or overdue on that date. Banks then prepare farmer-wise lists, the government verifies them, and money is released to banks in tranches, which can take many months. Defaulted or rephased loans, loans above the ceiling, and loans of ineligible categories are often left out. Until the waiver amount is actually credited against your account, the loan legally stands and interest may keep running, so check your loan statement and the official beneficiary list rather than assuming it is cleared. Read the specific state guidelines and confirm your status with your branch.