In the finance industry, NPA accounts are a challenge for both lenders and borrowers. Lenders suffer as their money-generating assets stop performing and borrowers suffer due to legal actions against their hard-earned properties, taken by lenders to recover their loans.
Resolving the NPA account is crucial for both parties. But, specifically, the borrower must resolve the NPA account as fast as possible because the bank is trying to recover its money by selling collateral. For this, the bank will take legal action under the SARFASI Act. First, they will take symbolic possession of the property and then take physical possession. After that, go to an auction of the acquired property. So, resolving the NPA will be a top-notch necessity for the borrower.
A lot of new-age NBFCs emerged in the last few years, which offer the takeover of NPA accounts from banks and give relief to NPA holders. These NBFCs offer a lot of benefits to borrowers as well as clean the bank’s balance sheet. NPA funding from these NBFCs provides the following benefits to the borrowers:
- Direct takeover of NPA account from the bank
- Loan for closing NPA account and OTS (One Time Settlement)
- Payment made directly in the NPA account
- Direct transfer of securities/collateral
- Freedom from NPA Status
- Update in CIBIL Score
- A new repayment track record
- Can avail facilities from other financial institutions
- A moratorium period can be given
- Additional funds can be provided
- A new repayment tenor
These NBFC companies look out for the clients who, despite the NPA issues, manage to run their business, which secures the repayment of the new loan. Also, these companies offer some additional funding support to the NPA borrower to run the business more efficiently. Taking a loan from these companies not only removes the NPA status but also helps you in taking the business to new heights.
