Loan for NPA Accounts
A loan for NPA accounts is a financial facility to close a borrower’s previous NPA liabilities with a new loan. It involves the closure of previous stressed loans and putting funds to revive the business.
Is your loan account classified as an NPA (Non-Performing Asset) by your banker?
Are you struggling with stressed loan accounts?
Traditional banks & NBFCs do not extend new loans to NPA account holders, making it difficult for borrowers to clear their stressed loans & revive their businesses.
These days, the RBI (Reserve Bank of India) has implemented strict policies towards the recovery of bad loans for banks. But making it harder for NPA borrowers to come out of it and excel in their businesses.
Solution -Loan for NPA Accounts
We specialise in providing funds to stressed borrowers to help them clear their NPA accounts and regain stability in their businesses. Our financial solutions are designed to help companies and individuals facing financial challenges to settle their existing liabilities & move towards financial recovery.
Whether you are a business owner, property owner, builder, manufacturer, trader, or professional, we help you explore funding options based on the strength of your assets and repayment potential.
We have an NBFC to provide funding in such stressed or NPA cases. It offers benefits like direct closure of NPA accounts, a structured repayment schedule with a moratorium, and a chance to revive the credit score.
These loans can be used to:
- Regularize or close existing NPA loans
- Improve business cash flow
- Restart stalled real estate projects
- Pay statutory dues and working capital requirements
- Bridge finance between bigger financing
- Post-NPA financial support
The loan for NPA accounts is useful in cases where, despite NPA issues, the borrower manages to run their business and generate stable income enough for the repayment of the new loan.
Who Can Apply for the Loan for NPA Accounts?
- Low CMR-rated companies
- MSMEs
- Manufacturers
- Traders
- Builders & Developers
- Real Estate Companies
- Professionals
- Partnership Firms
- Private Limited Companies
- LLPs
- Individuals with secured assets
Eligibility Criteria to Get a Loan for an NPA Account
Eligibility depends on several factors rather than only the NPA status.
Key considerations include:
- Valuation of collateral or property
- Existing outstanding loan amount
- Current business potential
- Future Income generation potential
- Loan-to-business viability
- Alternate Repayment options
- Legal status of the NPA loan
- Documentation availability
Not everyone qualifies for a loan for NPA accounts; rather, suitable borrowers with a current income source, vision to expand the business, and a clean repayment strategy may be eligible.
Some of the key Features of Loans for NPA Accounts
- Instant NPA status removal
- Immediate CIBIL upgrade & revival
- Direct closure of stressed loans
- Refinancing of NPA accounts
- Working Capital Finance
- Funding solutions for Corporate NPA’s
- Loan against property for borrowers having low CIBIL scores
- Higher loan amounts
How Do Loans for NPA Accounts Help Stressed Borrowers?
Loans for NPA accounts help stressed borrowers in the following ways:
- Closing stressed/NPA loans
- Provide working capital for business
- Offer business revival option
- Increase credit score
- Consolidation of multiple loans with one EMI
- Ideal solution for borrowers looking for NPA restructuring
- EMI break via moratorium
- Opens the door for fresh loans from conventional banks in future
Loan for NPA Account Holders
A loan for NPA holders is available for borrowers who have NPA or stressed accounts but require funds to close such accounts and regain business viability. Funding is available across all major cities of India, and loans start from one crore to any higher amount required.
Generally, NPA Account holders are unable to secure funds or loans through the standard banking channels, so our specialised loan offering for such NPA account holders helps them manage their loans and strengthen their businesses. A loan for NPA account holders not only provides funds to close their accounts but also offers funds towards the working capital requirements. Ensuring that credit score or NPA status will not be a hurdle for such borrowers in getting the loans.
NBFC Loan for NPA Accounts
An NBFC loan for NPA Accounts provides an institutional structured finance solution for borrowers whose loan account is classified as NPA or SMA1 or 2. Due to NPA marking in the credit record, standard banks do not offer financing for such borrowers. When loan accounts are classified as NPA, it creates a lot of issues for the borrowers, like pressure to close NPA accounts, legal matters, and the hustle to save their properties. Apart from all this, reviving businesses that were already in trouble, with no other option available to pay the bank loan.
So, these NBFC offer loans to NPA clients who are under stress and looking for bailout finance to close stressed loans & revive their business.
Depending on the assessment, funding may be structured to help with:
- NPA account closure
- One-Time Settlement (OTS) funding
- Takeover of an existing NPA loan
- Settlement of stressed business liabilities
- Business working capital after NPA resolution
- Funding against residential, commercial or industrial property
Secured loan against NPA property
A secured loan against property is a property-backed funding solution for borrowers whose existing loan accounts have been declared NPA. Those borrowers require funds to close their stressed accounts or funding required for working capital. So, if they own a residential, commercial or industrial property to offer as collateral, then they are eligible to get a secured loan against such property.
The conventional banks have closed their doors to NPA borrowers, meaning they do not offer any kind of secured or unsecured funding to such stressed borrowers. However, our alternate funding solutions support the borrowers who are looking for a secured loan against their collateral to meet their requirement of funds to close NPA, or to revive their business.
Loan for NPA Account -Process
The loan for NPA Accounts generally involves the evaluation of clients’ current financial position, roadmap for the repayment & closure of the NPA account. However, it has a certain number of steps to reach the goal. These steps involve:
- Sharing NPA Details
The lender may collect information about the NPA, such as the outstanding amount, lender details, legal complications, and options for loan settlement.
- Financial Assessment
The borrower needs to provide current business documents along with the repayment plan. Business documents include the last three years’ financials, one year of bank statements, GSTR, and KYC of the company & individual. Repayment can be justified by business income or rental receipts and payments receivable from the sale of properties.
- Property Legal & Valuation
The lender may ask you to submit the property documents to initiate the legal & valuation of the collateral property offered. Generally, external legal agencies are assigned for this, and they visit the property for a valuation assessment and also collect the property data from the local registrar’s office.
- Funding Structure
After successful evaluation of financial documents and receiving legal and valuation reports, the lender may discuss with the borrowers to prepare a loan structure involving the repayment tenor, disbursement method, and personal guarantee of the borrowers.
- Approval & Loan Agreement
After all due diligence, an approval letter is issued to the borrower. Upon acceptance of the approval letter, the lender may ask for the signing of the final loan agreement.
- Disbursement
Once all stipulated conditions are fulfilled, the approved funding is disbursed according to the agreed structure. In NPA/OTS cases, funds may be directed toward the existing lender or settlement requirement, depending on the transaction.
Contact us today if you are under stress and want to get a loan for NPA accounts and re-track your business.