One time settlement (OTS)
Options Available After Becoming NPA:
Loan Restructuring: If the borrower has a non-performing asset (NPA) loan, they can ask their bank to restructure it. By offering a repayment extension, this option enables the borrower to take advantage of banking services.
Legal Remedies: To stop the bank’s actions and request more time for loan repayment, the borrower may choose to go to the appropriate District or State Debt Recovery Tribunal (DRT) courts.
Refinancing NPA Loan: The borrower has the option to refinance their NPA loan, which entails settling the matter and paying off any outstanding bank debt. The borrower has the choice to independently arrange cash or look into market-available financing options.
OTS (One Time Settlement): The borrower may work out a one-time settlement with the bank if they have the resources to pay back their non-performing asset loan.
The borrower has two options when it comes to selling the collateral:
First, the borrower can arrange funds on their own without the bank’s help and pay back the loan by selling an asset or property that isn’t mortgaged with the bank.
Second, if the property or asset is mortgaged, the borrower might inform the bank immediately of their desire to sell collateral to pay off the debt.
How will we help you?
In terms of planning and assisting the client, we provide a 3600 solution from the standpoint of the Insolvency Code, NCLT Proceedings, and NPA recovery. Our top goal is to keep your business and property safe, defending and planning bank recovering hearings and procedures. submitting an insolvency petition to the National Company Law Appellate Tribunal (NCLAT) or the National Company Law Tribunal (NCLT) or defending one. corporate debtor’s restructuring/revival process, which includes creating or supporting the review of resolution plans.
starting or defending legal action against the corporate debtor’s guarantors and mortgage holders.
working with a resolution professional to advise and facilitate a successful resolution plan.
giving clients advice on several buyout and funding possibilities for plans for restructuring, resolution, and rebirth.
giving clients advice on the many aspects of the NCLT, NPA, bank negotiations, and internal restructuring processes.
deep understanding of financial regulations and specialized knowledge of finance and systems.
In order to preserve your valuable property, which the bank acquired under the SARFAESI Act of 2002, we at Prusage assist you in obtaining non-performing assets (NPA) funding from our internal investors (registered with the RBI and SEBI) who are eager to take over all of the fund or non-fund-based limits from the company.
Consult our experienced financial advisor for further information about NPA funding for NBFCs, NPA restructuring or settlement, or private finance for NPA accounts.
Prusage focuses on offering financial services to customers facing financial turmoil or are in non-performing asset (NPA) status.
Our specialized NPA Resolution department is aware of the intricacies of non-performing assets. Whether you need help with NPA Retrieval, NPA Takeover, Transfer of NPA Accounts, Loan for NPA, NPA OTS Funding, or MSME loan for NPA accounts, we offer a wide choice of NPA Solutions that are customized to meet your unique needs.
Prusage is available to help you at every stage. We help you to restore your financial well-being and open new growth prospects with our extensive industry understanding and dedication to deliver quality results.
To find NPA funding solutions that best meet your needs, we collaborate closely with our partners, who are registered with the RBI and SEBI. Our NPA Segment works with financially stressed businesses to provide financing for non-performing assets (NPA) loans.
The 4-R Strategy
RECOGNITION: Carefully examine the notices and various communication received from legal and financial institutions.
RESOLUTION: establishing a plan and drafting OTS proposals, resolution plans, and business recovery plans.
REFORM: responding to all legal notices, assisting with the business turnaround, and handling legal charges.
RECAPITALIZATION: investing money and reviving the health of your company
NPA: Meaning and when does a loan become NPA?
An NPA, or non-performing asset, is declared by the bank when a loan account ceases to generate income for the bank or when the borrower of a certain loan account stops making EMIs or repayments for longer than or equal to three months.
The bank will send a notice of default (Loan Recall Notice) if the borrower misses three consecutive EMI payments.
The lender may file a lawsuit to recoup the unpaid balance under the SARFAESI Act 2002, or the borrower may decide to engage in negotiations with the bank through a “debt restructuring” process.
When a lawsuit is filed, the lender usually seizes any collateral that was used as loan security and starts the liquidation process. Selling assets used as loan security, such as homes, factories, or other personal property, may be necessary to do this. There is a significant chance of total shutdown if the client’s commercial assets are involved.
The company’s market reputation is harmed by the bank’s actions, such as property notices and auction procedures. As a result, properties lose market value, and commercial creditors turn to the judicial system to get their money back.
All of the customer’s loans may be classified as non-performing assets (NPAs) even if they are regularly making on-time payments on all their other debts with the same bank. This is due to the Reserve Bank of India’s (RBI) regulations, which mandate that banks categorize non-performing assets (NPAs) at the borrower level instead of loan-by-loan. The customer must make sure that all loan repayments are made on time to prevent being classified as a non-performing asset (NPA).
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: Following the designation of an account as a non-performing asset (NPA), the bank will send out a Loan Recall Notice. It demands that the borrower pay back the whole amount of the loan within a predetermined window of time.
Notice 13(2): The Bank may issue Notice 13(2) in response to the demand notice in accordance with the SARFAESI Act, 2002. This notification gives the borrower sixty days to repay the bank and details the entire amount owed. The borrower must resolve the matter quickly and efficiently at this point.
Notice 13(4): In accordance with the SARFAESI Act of 2002, the Bank may issue Notice 13(4), also known as the “Symbolic Possession Notice,” after issuing the 13 (2) notices. The borrower is notified in this notification that the designated assets or properties are now the bank’s legal property. To recoup the unpaid loan balance, the bank may either physically seize the item or property or start legal actions, such asset auctions.