NPA of agricultural loans

it is depend upon the seasonal cultivation or yeild of paddy or food grains etc 

Refer "RBI / 2007-2008/ 330 RPCD.No.PLFS.BC.72 /05.04.02/2007-08 of May 23, 2008

3. Definitions

3.1. ‘Direct Agricultural Loans’ means Short Term Production Loans and Investment Loans provided

directly to farmers for agricultural purposes. This would also include such loans provided directly to

groups of individual farmers (for example Self Help Groups and Joint Liability Groups), provided banks

maintain disaggregated data of the loan extended to each farmer belonging to that group.

3.2. ‘Short Term Production Loan’ means a loan given in connection with the raising of crops which is to

be repaid within 18 months. It will include working capital loan, not exceeding Rs. 1 lakh, for traditional

and non-traditional plantations and horticulture.

CA. Mukesh Saran

Lucknow