Loan for NPA Accounts
A Loan for an NPA Account is specifically designed to manage and clear the total loan outstanding in the non-performing assets (NPA) account and to come out of legal situations created by the bank. By taking this loan, borrowers can restructure their debt, improve cash flow, work towards improving their financial situation, and save their precious properties.
Key Features of a Loan for NPA Account
- Loan starts from Rs.1 Crore to any amount
- Available in PAN India
- Doorstep Services
- Can be raised on Residential/Commercial or Industrial properties
- No need for additional Collateral
- Direct payment to previous bank & exchange of securities/collaterals
How does it work?
It involves the introduction of a new lender who takes over a non-performing asset (NPA) from the original lender and restructures it to give financial stability to the borrower. This provides the borrower an opportunity to improve their financial position and restructure their debt under more manageable terms.
Benefits of NPA Account Takeover
- Immediate Financial Relief for Lenders:
- Removing NPAs from the lender’s balance sheet improves their financial position.
- Debt Restructuring for Borrowers:
- Offering more flexible repayment terms makes it easier for the borrower to manage their debt.
- Increased Recovery Processes:
- Specialized efforts maximize the recovery from distressed assets.
- Focused Management:
- It helps lenders to focus on their core business activities, while it becomes the responsibility of takeover institutions to manage the distressed assets.
- Improved Cash Flow:
- Immediate liquidity is provided to the lender, improving their overall cash flow situation.
- Additional Financing:
- It provides extra funds to help the borrower to stabilize his operations and to recover from financial distress.
- Equity Participation:
- It helps by investing in the borrower’s business to provide the necessary capital for growth and recovery from losses.
What is an NPA Account?
An NPA (Non-Performing Asset) account refers to a loan account where the borrower has failed to make payments for 90 days or more. This results in the asset being classified as “non-performing” by financial institutions, indicating that the loan is unlikely to be repaid as agreed. In such cases, a “Loan for NPA Account” can help borrowers restructure their debt and manage cash flows, giving them a path to recover from financial losses and providing them with stability.