Finance for NPA Loan Account
India’s No.1 and Largest NPA Finance Company with Proven Track Record: We are exclusively working for NPA Segment, whether you can say it as OTS funding in India, NPA Retrieval, Loan for NPA, NPA Solutions, NPA Takeover, Finance for NPA Loan, OTS Finance, OTS Funding, Finance facility for NPA accounts, Transfer of NPA accounts, NBFC or Bank for NPA, all things are same. Bottom-line is, that we will help you to transfer your NPA account to one of our Lender Companies so that you can have more time to pay off your debts and also save your precious property from the Bank SARFAESI Act.
- The loan starts from Rs.1 crore to any amount
- Loan available in all major tier 1, 2, and 3 cities in India.
- OTS Finance or Non-OTS Transaction
- Easy Onset of the process through soft copies
- Debt + Equity arrangements in proposal larger than Rs.10 crores.
At FinLender India, we have a Proven Track Record for NPA Retrieval or Financing. We have vast experience and deep knowledge of the subject. This makes us serve best to our NPA Clients.
OTS Funding is also available & clients are welcome, whereas non-OTS transactions also are dealt with.
Additionally, you can handle the NPA situation as under :
- Gain time legally.
- Get an equal stand with the Bank to agree to work out an amicable solution.
- Restructure the business, gain financial strength and improve bargaining power.
- Ultimately settle with the Bank amicably and put the unit back in a healthy state.
Re-Finance of NPA Accounts
What is NPA Account: Non-Performing Asset
When a loan account in a bank stops yielding/making a profit to the bank or when a borrower of a particular loan account stops repayments or EMI more than or equivalent three months then that particular account is considered as an NPA account.
Consequences to Borrower or Effects of NPA Account
- Difficulty in day-to-day operations of accounts as the bank starts adjusting the money deposited in accounts towards their charges & Interest and above those limits and other facilities will be suspended.
- Problems in maintaining accounts with other banks also. As bank starts interference with your other bank operations.
- As the bank is recalling their entire loan so they don’t extend any further loan facilities. The borrower will face problems in getting a loan from other banks & NBFC’s as per policies, NPA client is not eligible for loans & other such facilities.
- Bank starts the legal procedure for recovery of its loan, so the attitude towards the client becomes arrogant & authoritative and legal procedure distracts focus from business to fight legal situations.
- At some later stages, the bank tries to or go for possession of collateral and properties and if your business properties are engaged then client’s business & unit completely stakes of shutting down.
- Properties engaged in loans will lose their market reputation as bank proceedings put up a notice on the property and the auction process greatly affects this. This results in a lower down of the market value of the properties.
- In last, as no other bank or NBFC’s willing to give a loan to an NPA account so, taking a loan from the market and repaying the NPA account becomes very difficult for the borrower.
Legal Notice issued by Bank to Borrower
- Loan Recall Notice:This is the total loan recall notice issued by the bank after the declaration of the account as an NPA account. This notice says to deposit the entire amount of loan in a particular given time. This is an alarming stage for the borrower.
- Notice 13(2): This notice was issued by the bank after above said notice. This notice notifies the total outstanding amount in the account & giving a total of sixty days for the repayment. This is the stage where the borrower needs to resolve this issue at his best.
Notice 13(4): This notice was issued after the above 13(2) notice. This notice is also commonly known as “Symbolic possession Notice”. As through this notice, the bank notifies the borrower, that particular mentioned assets/properties will now legally belong to them & they can further process in taking physical possession of the asset/property or other legal proceedings like an auction of assets.
Options for Borrower
1) Restructure of NPA Account
The borrower can approach their bank to restructure their loan. This option gives some additional years for repayment and borrower can enjoy banking facilities also. This is a kind of extension of a loan. This product completely depends upon the banking policies & bank solely holds the complete rights to decide to go for it or not.
2) Legal Solutions
The client can approach their respective district or state DRT courts for taking time for repayment & put up a hold on bank proceedings. Generally, this can be done by depositing 20-25% of the amount out of the total outstanding amount. In this way, time is given for further repayment of the loan and the borrower gets relief from legal proceedings of banks/NBFC.
3) OTS or One Time Settlement
If the borrower has an arrangement of money to repay his NPA loan, then he can approach the bank/NBFC & asks for a one-time settlement. This feature allows the borrower to enjoy some discount on the total outstanding loan. This is the best way to control or wipe off heavy dues on loan account. This feature encourages both client & bank to settle down NPA Account as NPA accounts are also critical for the bank balance sheet. There are some institutes regulated by RBI and SEBI, who can fund entire or part of OTS amount as per requirement and repaying capacity of the borrower. It’s better to hire a professional Financial Consultant for the same as they are more knowledgeable & experienced on the subject.
4) Refinance of NPA Account
The borrower can go straight for refinance of his NPA loan. Through this feature, the borrower pays off bank dues in total & gets out of this mess. Borrowers can arrange funds by themselves or raise from us. It is highly advisable to hire a professional firm like us as we do have a Professional Financial Consultant who is more knowledgeable in the subject and take you out of this mess.
5) Paying Loan through the sale of Collateral
The borrower can do this in two different ways. Firstly, by selling the assets or properties which are mortgaged or not mortgaged with banks/NBFCs. (NOC required from bank/NBFC to sell off property mortgaged with them. Our team will assist you) This way, the borrower can arrange money without any interference from the bank & pay off its existing debt/loan.
Secondly, if an asset or property is a mortgage in the bank then the borrower can speak to the bank directly and inform them his intentions of paying off debt through this tool. And if the bank allows then he can approach the bank with a prospective buyer. This whole procedure can be achieved through a tripartite agreement between the bank, borrower, and buyer or any other way suggested by the bank.
Rights of Borrower
- 1) Right of Ample Notice: Bank has to follow the process while recovering its dues. The bank needs to follow the SARFAESI act & give you time for repayment. This is the bank’s responsibility to notifies the borrower about each proceeding involved in recovery so the client can plan accordingly.
- 2) Right to be Heard: Borrower can make representation to the authorized officer and put forth his objections in the procedure. And in return, the officer will revert you within seven days with valid reasons on acceptance or rejection of objections,
- 3) Ensure Fair value: Borrower reserves the right to ensure the fair value of assets/collateral. Before auction or possession of an asset, the bank will go for the valuation of the asset and borrower can object if he found the valuation of his asset is not up to the mark or as per the standard.
- 4) Realize Balance proceeds: Bank is required to refund any balance after recovering their dues after the auction of assets. This is the borrower’s right to get whatever balance amount is left after the process as this money belongs to him.
- 5) Right to be treated Properly: This was already mentioned by RBI years ago to treat borrowers with dignity. RBI pulled up banks regarding the conduct of their recovery agents. Bank official or their respective agencies cannot humiliate or misbehave with the borrower or their family member as banks are regulated bodies through RBI.