Agricultural land as security to banks

ARJANNA PENUBHOTULA (Querist) 24 March 2012 This query is : Resolved
Is there any prohibition for accepting agricultural land as security for the loans other than agricultural purposes in the state of Gujrat. if so what is the act and i would like to know the concerned provision number

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bhagwat patil (Expert) 25 March 2012
There is no rule as such but it becomes difficult for lender bank to auction the agricultural land because of revenue rule as our constitutional structure of is socialistic and protects agriculturist borrower from recovery of bad loans.Thus the loans againt agricultural security are not encouraged by banks.

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