Loan for NPA Accounts

Loans for NPA accounts are offered to borrowers to settle their NPA account liability and resolve all legal disputes with their previous bankers, thereby saving their valuable assets from the bank. In this way, a new loan is offered with a new repayment plan, including the moratorium period, if required.

If a loan account slips into the NPA, then the bank demands the whole loan amount, including interest & penalty. This can be a big financial burden for the borrower, as he is struggling with the financial crunch in the business due to any of the reasons, like delay in payments or shipment. This causes delays or a complete stoppage in the bank loan EMIs.

And, if three or more EMIs are stopped, then the bank declares that the account as an NPA and demands the full loan amount from the borrower. In this way, the borrower’s main financial pillar, the bank, starts legal proceedings against him to recover its money. This can be complete chaos for the borrower.

After NPA, the borrower was left with two options:

• To pay the full loan amount, including the interest & penalties levied on the account, and save his properties.
• To negotiate with the bank and demand to waive all the interest & penalties under an OTS (One-Time Settlement). This way borrower can save a lot of money by paying only a negotiated amount.

But, in both ways, he requires a large amount of money, which his current disrupted business cannot pay off. So, he can sell off some of his assets or search the open market for a new loan.

Here, our loans for NPA accounts are helpful for the borrower in such difficult situations that provide relief by paying the bank on behalf of the borrower, and also offer some additional amount to re-track their business. And, the borrower can repay this new loan in easy monthly installments.

Key Features of Loans for NPA Accounts

✅ Who Can Apply?

Our Loan for NPA Accounts is beneficial for:

• SMEs & Corporations with stressed accounts
• Borrowers with NPA classification looking for OTS settlement
• Property owners facing asset auction due to bank recovery proceedings
• Businesses with overdue term loans or working capital loans
• Builders & developers with stalled projects

📋 Documentation Required

• Loan sanction letters & repayment history
• NPA classification letter from the bank
• Asset ownership documents
• KYC documents of borrower & guarantors
• Company financials (if applicable)

Our experts will guide you through the paperwork for faster processing.

What is an NPA Account?

An NPA (Non-Performing Asset) account is a loan or advance where the borrower has failed to make scheduled repayments for a specified period (generally 90 days or more). Once classified as NPA, banks stop recognizing interest income from it, making it difficult for the borrower to get further loans from conventional banking channels.

We bridge this gap by offering funding from NBFCs, or private lenders, to help regularize your account or close it through a one-time settlement (OTS).