Revive and thrive your business
FinLender is India’s No.1 NPA Finance Company with Proven Track Record. We are exclusively working for NPA Segment, whether you can say it as NPA Retrieval, Loan for NPA, NPA Solutions, NPA Takeover, Finance for NPA Loan, Finance facility for NPA accounts, Transfer of NPA accounts, OTS funding in India, OTS Finance, OTS Funding. We will help you in transferring your NPA account to one of our Lender Companies (which are registered under RBI and SEBI).
We believe in the 4-R Strategy
Recognition
Evaluate and scrutinize notices & related documents received from Financial Institutions.
Resolution
Creating strategy and preparing resolution plans, OTS proposals, and revival plans for your business.
Reform
Helping with the business turnaround, legal charges, and replying to all legal notices.
Recapitalization
Infusing capital and reviving your business.
What is NPA Account: Non-Preforming Asset?
When a loan account in a bank stop 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 bank declares that particular account as an NPA or Non-performing account.
What happens when your company`s account is NPA? or What are the consequences faced by the NPA Account holder?
- Bank / NBFC suspends all the fund or non-fund-based limits of the borrower and starts adjusting the money deposited in that particular account towards their penalties, charges & Interest payments.
- Problem in maintaining an account with other banks, as the bank starts interfering with your other bank operations as well.
- As the bank is recalling their entire loan, so they don’t extend any further loan facilities to the borrower. The borrower will face difficulty in procuring a loan from other banks & NBFCs because as per the policies, the NPA client is not eligible for any other loans & related facilities.
- Bank starts the legal procedure for recovery of its loan under SARFAESI Act, 2002, so their attitude towards the borrower becomes arrogant & they start legal procedure which distracts the focus of borrower from business to fight legal situations.
- At some later stages, the bank starts taking symbolic as well as physical possession of the collateral under SARFAESI ACT, 2002 and if the borrower’s business properties are engaged, then the business & unit completely shuts down.
- Properties engaged in loans will lose their market reputation as bank proceedings put ups a notice on the mortgaged properties and later auction process greatly deteriorates the market value of the same.
- In the last, as no other bank or NBFC funds an NPA account, taking a loan from the market and repaying the NPA account becomes very difficult for the borrower.
What are the Legal Notices Banks can issue to NPA Account Holders? or What banks will do legally, when someone becomes an NPA?
Loan Recall Notice: This is the outstanding loan amount recall notice issued by the bank after the declaration of the account as an NPA account. This notice orders to repay the entire outstanding loan amount to the bank in a particular given time period. This is an alarming stage for the borrower.
Notice 13(2): This notice can be issued by the Bank under SARFAESI Act, 2002 after said demand notice. This notice notifies the total outstanding amount with the bank & gives 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, commonly known as “Symbolic possession Notice” can be issued by the Bank under SARFAESI Act, 2002 after the above 13(2) notices. Through this notice, the bank notifies the borrower, that particular mentioned assets/properties will now legally belongs to them & the bank will proceed to take physical possession of the asset/property or do the legal proceedings like an auction of assets to recover the outstanding loan amount.
What are the options available to the borrower after being NPA?
- Restructure of NPA Account
- Legal Solutions
- OTS or One Time Settlement
- Refinance of NPA Account
- Paying Loan through the sale of Collateral
What are your rights if you can’t repay a loan?
Right to ample notice- Banks have to follow process and give you time to repay dues before repossessing your assets to realise the arrears.
Right to ensure fair value- The borrower can object if the property is undervalued. He can justify his objection by conveying any better offer that he may have so that the bank can make a decision
Realize balance proceeds – After recovering the dues and all expenses of conducting the auction, the bank has to refund the amount to the borrower.
Right to be heard- During the notice period, borrower can make representation to the authorised officer and put forth objections to the repossession notice.
Right to humane treatment – Lenders are required to respect borrowers’ privacy during these visits and ensure civil and decent behaviour.
We at FinLender help you in raising NPA Funding from our in-house investors (who are registered under RBI) who are interested in taking over all the Fund or non-fund-based limits from the company so that you can save your precious property which is acquired by the Bank under SARFAESI Act, 2002.
For more assistance on NPA Finance or NPA Funding or NPA Restructuring or NPA settlement do speak with our Financial Advisor.
