NPA Loan Takeover
We offer an NPA account takeover facility, enabling borrowers to transfer loan accounts that are classified as NPA (Non-Performing Asset) to the new financing institution. This process includes the transfer of the outstanding loan liability along with all underlying collateral and securities.
A new lender evaluates the borrower’s financial profile, asset value & repayment sources. If everything is found suitable as per the policy, the lender approves the takeover and pays directly to the previous bank.
This will be suitable for stressed borrowers as the new lender offers a new repayment plan with an option of a moratorium period. So, the borrower can pay the new loan in monthly emi’s, suited to their financial eligibility.
This facility can be availed by borrowers struggling with distressed loans & facing legal action by banks. It will provide immediate relief from the ongoing legal disputes & reducing huge financial burden of paying the entire loan.
Benefits of Taking Over an NPA Loan
- Opportunity to restructure existing debt
- Improved repayment terms (subject to lender approval)
- Availability of working capital for business expansion
- Better cash flow management
- Reduced financial stress
- Credit revival support
- Possibility of standard banking loans in future
Key features of NPA Loan Takeover Facility
- Loans starting from Rs.1 Crore
- Available in PAN India
- Easy repayment options like monthly emi’s
- A three-month moratorium is offered
- Option of pre-payment
- Auto-update of CIBIL
- Change of NPA status to normal
- No need of additional collateral
- Also available for paying OTS (One-Time Settlement)
Who Can Apply for NPA Loan Takeover?
- MSMEs
- Proprietorship firms
- Partnership firms
- Private Limited Companies
- Manufacturers & Traders
- Service providers with turnover of more than 10 Crores
- Businesses having a low CMR rating
- Hotels & Restaurants
- Educational Institutions
NPA Account Transfer
NPA Account Transfer is a loan facility to replace an NPA or stressed loan with a new loan. This way, the previous NPA account liability is transferred to a new lender. The new lender offers a scheduled repayment plan to borrowers so they can avoid paying a high amount in a single tranche to the previous banker.
NPA account transfer facility is well suited to borrowers having a good collateral value mortgaged in the bank & whose loan accounts are classified as NPA. Also, it resolves the stressful situation of a borrower who manages to run their business or has some alternate source of income despite NPA issues.
The NPA account transfer involves the following process:
- Review of income documents & NPA account-related information by the new lender
- Roadmap to close the existing NPA loan liability
- Direct payoff of the NPA account
- Transfer of NPA loan to new lender along with the collateral securities
- A new repayment tenor and moratorium are provided to the client
- Discharge of all legal cases with the previous banker
NPA Loan Refinancing
NPA Loan Refinancing refers to arranging new financing to help a borrower manage or resolve an existing Non-Performing Asset (NPA) loan. It may involve replacing or restructuring existing debt through a new lender, NBFC, or private financier, subject to the lender’s eligibility and risk assessment.
NPA Refinancing can help borrowers settle outstanding dues, restructure liabilities, release or protect assets, and restore financial stability. Lenders generally evaluate the value and ownership of collateral, outstanding loan amount, repayment capacity, legal status, and the proposed exit strategy before approving funding.
For borrowers with suitable assets and a viable repayment plan, NPA loan refinancing can provide an alternative to traditional bank financing and may also support One-Time Settlement (OTS) or other negotiated resolution strategies.
NPA Loan Takeover from Bank
NPA loan takeovers from banks provide immediate relief for borrowers whose loans are declared NPA by their previous bank. Borrowers who are looking for an alternative financier to take over those loans from the bank and provide them with sufficient time for repayment can opt for this option.
Through this takeover from the bank, borrowers will get a long repayment period of up to seven years, including a moratorium of three to six months. It is useful for borrowers under NPA status, SMA 1 & 2, and for companies having a high CMR rating.
NPA takeover from the bank also offers the client working capital support to revive their business.
Private NPA Loan Takeover
Private NPA loan takeover facility is available for clients having good collateral to offer as well as having a stable income to support the repayment of the new loan. It allows businesses to access private funds for managing their stressed accounts and expanding their businesses.
Private funding or loans do not follow the standard guidelines; they can provide relief on the credit score and past repayment history of the borrower. But their general focus areas are the current market valuation of the properties offered for this loan and the current financial status of the borrower to repay this new loan.
Private NPA loan takeover may be useful for business owners, property owners, builders, and borrowers seeking OTS or NPA resolution, particularly when they have adequate assets to support the proposed financing.
Contact us & rely on us for the resolution of your NPA & Stressed Loan Accounts. We are well experienced in handling such situations and offer a reliable financing solution to help you clear your bad debts.