Tamil Nadu has finished on top at the all-India level for having the highest amount of outstanding agricultural loans.
As on June 30 this year, the figure of outstanding farm loans was ₹3.47 lakh crore, accounting for about 16.5% of the total. There were 2.79 crore accounts in the State which was again the highest in the country, according to a perusal of data, as provided by Union Minister of State for Finance Bhagwat Karad in his reply on Monday in the Lok Sabha on the subject of agricultural loans, quoting the National Bank for Agriculture and Rural Development (NABARD)
As for the definition of agricultural loans, a former senior NABARD official explains that the term stands for loans for agricultural production and investment in agriculture. It covers short term loans for agriculture (crop production up to 18 months), medium term loans (more than 18 months up to 5 years) such as dairy or tractor loans and long-term loans (beyond 5 years) such as horticulture.
