Productive Loan and Unproductive Loan.

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answered Dec 25, 2021 by RidhiKumari (34.1k points)
selected Dec 27, 2021 by Shilpajadhav

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Productive Loan	Unproductive Loan
(i) Loan which is taken for agricultural production purposes is called a productive loan.	(i) Loan which is taken for unproductive purposes is called an unproductive loan.
(ii) Eg. purchase of tractor, land or seeds or agricultural equipment, etc.	(ii) Eg. expenditure on marriages or religious ceremonies.
(iii) It is an investment. It increases farmers’ income in the future.	(iii) It is an expenditure. It increases the debt burden of the farmers.