NPA Finance

NPA Finance

What is NPA Finance?

NPA Finance is a loan given by any financial institution licensed by RBI (Reserve Bank of India) to take over borrower NPA account liability from a previous bank/NBFC and give repayment in the shape of EMIs for the next four to five years. This loan can be paid directly to the previous bank on behalf of the borrower to close the NPA account completely. All the securities/collateral will come to this new lender. This new loan directly depends upon the financial health of the client’s business and collateral in the previous bank and any additional collateral offered. A good cash flow in the balance sheet gives confidence to new lenders to finance & ample collateral coverage usually 2x collateral is preferred. Clients get benefits in the following ways:

  • Previous NPA Account/liability will be completely closed
  • All the litigations or court cases also close with this NPA Finance loan
  • A new repayment track will be made which will have a positive impact on credit scoring
  • To pay directly to the previous bank
  • Any client with Indian provenance can apply

Services We Offer

NPA Restructuring

NPA Restructuring help clients to regain the full potential of their fund-based & non-fund base loan facilities and manage their finances in a better way. Restructuring an NPA account is one of the best solutions to avoid the complexity of an NPA account as it reschedules the payment tenor & method while remaining servicing to the bank. NPA Account restructuring and corporate Debt Restructuring are widely supported by RBI-Reserve Bank of India which can be accessed through the following links:

https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12185&Mode=0

https://rbi.org.in/upload/notification/pdfs/67158.pdf

NPA Account Takeover

We specialize in taking over borrowers’ existing NPA loan liabilities and transferring them to one of our associated lenders. This process includes offering a structured EMI repayment plan and a moratorium period. By transferring the NPA account, borrowers can achieve permanent relief from NPA status and restart their financial journey. Borrowers with strong collateral and a well-operating business are eligible for this service.

NPA Funding Company

Fund Source India is the most trusted NPA Finance companies dedicated to clients under Stress or NPA status and facing legal issues with banks & they are now looking for finance to come out of this Stress situation and further excel in their businesses.

With the help of our NPA Finance services clients can convert their NPA account into a normal account and get a fresh financial restart to the borrower. Our services enable you to regain control of your finances and focus on your business expansion. 

Our rich experience and deep knowledge of the subject make us a leader in NPA Funding company in India. Our previous track record and industry connections for resolving stress accounts give confidence to our clients. We offer a wide range of services to cater the needs of our clients & to help them to come out of stressful situations and excel in business.

What is Non-Performing Asset (NPA)

When a borrower defaults on his monthly repayment & this stops generating income for the bank then the bank classifies this particular defaulted loan account as a Non-Performing Asset (NPA). Also as per RBI policy any account that defaulted on its repayment equivalent or more than 90 days, that account considered as a non-performing asset. 

Banks & other financial institutions are equipped with the Sarfaesi Act which empowers them to recover their Non-Performing assets or loans effectively without obtaining permission from legal courts.

What is the SARFAESI Act?

The Sarfaesi Act enables banks & financial institutions registered under RBI to sell or auction the borrower’s properties/assets in the event of default to recover their loan without any intervention from the courts.

The Sarfaesi Act only applies to secured loans & agriculture properties/land does not fall under this act. An order from the court is not required for the selling or auction of collaterals so the bank can liquidate collateral via the auction process in a shorter period of time. Bank reduces their NPA ratio by enforcing the Sarfaesi Act.

Terms & Conditions

  • NPA Finance starts from Rs.2 crores to any amount
  • NPA Finance Loan available in all major cities of India
  • Available for OTS Finance or Non-OTS Transaction
  • Can be utilized to pay partial to full NPA outstanding
  • Easy Onset of the process through soft copies
  • Useful for clients in DRT & NCLT courts
  • Debt + Equity arrangements in cases larger than Rs.10 Crores

Benefits of Choosing our NPA Finance Services

  1. Expert Consultation: Our financial experts have vast experience & in-depth knowledge providing financial assistance for NPA Accounts. They evaluate your business & collateral securities and provides you financial tools to close your NPA accounts and to raise working capital for your business.
  2. Customized Solution: We offer various repayment options, like monthly EMI, balloon repayment or even bullet payment mode is also available. According to the client’s business cash flow & payment cycle, the repayment method is mutually decided with the client.
  3. Better Cash Flows: Our NPA Financial Services helps the clients close their NPA account and also infuses some additional funds towards working capital requirements in their company so as to scale up their business.
  4. Quick Approval: Our financial services are structured in such a way as to provide funding in the shortest period of time to drag you out of stressful situations in the fastest possible time.
  5. After-Sales Service: We also provide after-sales service to help clients raise a second round of funding after a few months of NPA Financing to take full benefit of banking products and to manage their business efficiently such as raising fund-based & non-fund-based loans.

How Our Services Work?

Our process is designed to be simple and efficient:

  • Consultation: Reach out to us with your NPA Account details.
  • Analysis: Our experts analyze your requirements and suggest suitable financing options.
  • Customization: We tailor a financing plan that aligns with your current financial situation and budget.
  • Application: Submit your application along with the necessary documents.
  • Approval: Our team reviews your application and grants approval quickly.
  • Disbursement: Once approved, funds are disbursed as per the agreed-upon terms.

Client Testimonials

“With the help of your company, we easily obtained NPA Finance without any difficulty. We appreciate your efforts in procuring the loan amount. Great work.”
– Ajay Chawla, Chawla Printers Pvt Ltd, New Delhi

“One of the most prominent companies, as we had been stuck for the last two years with our bank. Fund Source helped us secure NPA Finance within a short period, providing timely assistance to resolve our financial challenges. Thank you, Fund Source, for your prompt help.”
– Brijesh Shukla, Rajhans Fertilizers Ltd, Indore

Ready to Take the First Step?

Don’t let financial burdens hold you back. Contact us today to schedule a consultation and take the first step towards a debt-free future.

Reach out to Vineet Kumar, our Financial Expert, at +91 9810218215 or vineet@fundsource.in. Connect with Vineet on LinkedIn to stay updated with expert insights.

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FAQs

Is NPA Finance Loan available in Chennai?

Yes, the NPA Finance loan is available in Chennai. NPA Finance loans are also available in Mumbai, Pune, Bangalore & all major cities. Moreover, borrowers in tier 2 cities are also eligible for this loan.

How NPA can be recovered?

NPA account can be recovered and converted to a normal account in the following ways: By closing the NPA account along with total interest & penalties. By taking small loans like auto & consumer loans. Repayment of these loans will improve the credit scores & within a short period of time, the NPA account will be recovered fully.

Will NPA affect credit score?

NPA accounts very adversely affect cibil & credit score of the borrower. Once a loan slips into NPA, the borrower is not able to raise new loans for a long period of time may be around for the next 5 to 7 years. Only a systematic recovery solution will be able to restore the credit score.

How can I improve my credit score after NPA?

The best way to improve cibil score after NPA is by taking small loans like auto & consumer loans & paying their EMI in a timely manner. Repayment of these new loans will help improve the credit score over some period and also give confidence to new lenders.

What happens when a loan is NPA?

When a loan account slips into NPA, the bank tries to recover the total loan amount with interest & penalties by legally selling the collateral and putting financial pressure by suspending all loan facilities of the borrower. Banks are equipped with the Sarfaesi Act which allows them to sell collateral properties without obtaining permission from courts. Nowadays, banks can even move to NCLT for liquidation of borrower companies and to recover their loan. NCLT is a tribunal that secures the rights of the creditors and can start the insolvency process in their favor.

Can banks restructure NPA accounts?

As per RBI guidelines on restructuring & CDR(Corporate Debt Restructuring), NPA accounts for more than Rs.25 crores, or facilities with multiple banking arrangements are eligible for restructuring. In the case of multiple banking arrangements like consortium banking, the borrower can directly apply to the lead banker, and in the case of multiple banks, he can apply to all lenders individually as per guidelines.

Can any bank take over the NPA account?

As per strict RBI guidelines & banking policies, no bank can take over a part or wholesome amount of NPA account with a bank or NBFCs. As per RBI guidelines of 2022, an NPA borrower can only maintain a current account other than his previous bank to run his business.

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