'NPA' is a term you will hear often once a loan falls behind. Understanding it helps you see where your account stands and what options open up.
What NPA means
A Non-Performing Asset is a loan on which repayments have not been made for a defined period. Once classified, the account is treated differently by the bank.
For farm loans, the classification timeline is linked to the crop and income cycle.
Why NPA status matters for settlement
Settlement options such as OTS typically apply to accounts already classified as NPA. Knowing your account's status tells you which pathways are realistically available.
Frequently asked questions
How long before a farm loan becomes an NPA?
It depends on the loan type and is linked to the crop season for agricultural loans. Check your specific account classification with the bank.
Can an NPA account be made regular again?
Yes — through repayment or an agreed restructuring, an account can be upgraded. This is at the bank's discretion.