While identifying NPAs following points may be noted:
a. Term loan/s availed with crop loan/s: Where an agriculturist has availed loans both for short duration as well as long duration crops along with
Term loan/s, such term loan/s will be classified as NPA if either of the loans for short duration or long duration crops is classified as NPA. Example 1: An agriculturist avails following loans
i) Crop loan for kharif crop (a short duration crop) is availed on 1.6.2004 for which repayment due date prescribed is 31.03.2005.
ii) Crop loan for Adsali sugarcane (a long duration crop) is availed on 1.7.2004 for which repayment due date prescribed is 30.06.2006.
iii) A term loan for deepening of well is availed on 01.05.2004 for which first repayment instalment is due on 30.06.2006.
If crop loan for Kharif crop remains overdue up to 31.12.2006 (i.e. overdue for 21 months after repayment due date of 31.03.2005) this crop loan
along with the crop loan for sugarcane and term loan for deepening of well, will be classified as NPA with effect from 31.12.2006
b. Term loan/s availed without crop loan: where an agriculturist has availed only Agricultural Term Loan without availing any crop loan, details of crops grown (i.e. whether kharif / Rabi, horticulture, sugarcane or banana) are required to be obtained, verified and recorded. Based on the duration of these crops, overdue period for each crop as stated in (A) or (B) above will be identified and recorded. If the term loan remains overdue for the period identified as above, the same will be classified as NPA.
Example 2: In the example 1 referred to above, if only term loan is availed without availing crop loan for kharif crop & sugarcane, which are actually
grown by the borrower, overdue period will be identified as 21 months forkharif crop and 18 months for sugarcane crop as mentioned above paras.
The term loan will become NPA if its instalment of principal or interest remains overdue for 18 months from repayment due date i.e., from 30.06.2006 (overdue period applicable will be the lower of 18 or 21 months as applicable for crops grown by the borrower). Thus the loan for deepening of well will become NPA on 31.12.2007.