Getting funds for an NPA Account is very important for borrowers to maintain their business viability & to save their precious property from the sale activities of banks towards the recovery of the loan. When an account slips into NPA then as per policy all conventional banks & NBFCs do not extend any loan facility for borrowers.
An NPA status is like a dead end for the borrower as the bank starts freezing their accounts and without the proper banking support, it is impossible to operate the business that faces difficulties in collecting payments from the clients or non-issuance of BG/LC facility. So closing the NPA account will be the topmost priority for the borrower but without proper banking support, it is nearly impossible to raise the funds to close the NPA account. So now, we will see who provides funds for the NPA account.
Best 3 Ways to Fund an NPA Account
1. Term Loan:
An NPA Borrower can apply for a term loan facility in NBFCs that is comfortable in extending a loan for NPA Accounts as these NBFCs are designed in such a way as to understand the complexity of NPA accounts. Their team can access the issues that push the client toward NPA and can understand the post-NPA legality like DRT & NCLT proceedings. They can also discuss with your previous banker to resolve the issue through their financial assistance and are capable of paying directly to them and also infusing the additional funds into the business.
Click Here to fund your NPA Account
2. Private Lending:
Private money lenders are also a good option for NPA borrowers as they provide finance only on the basis of market value of property not on the basis of ratings & financial eligibility of borrowers. Usually, private lenders fund 50% of the market valuation of property offered & follow a strict mortgage policy.
3. Business Partner:
If the borrower has a good business model and has a high demand for the product that is capable of generating good profits, then he can seek out for business partner who can fund the NPA account & as well as infuse funds for the growth of the company. The client can put up an advertisement in the local business newspaper toward his requirement for a business partner and also take help of the business facilitators for the same.
Conclusion:
If an NPA borrower has a good-running business then he can apply for a term loan through some NBFC to fund the NPA account & can also raise additional funds for working capital requirements. And if you have additional collateral other than your factory/office & residence then private lending could be a good option. Lastly, if you have a good scalable business, you can also opt out of bringing a new partner into the company to fund the NPA.
