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What happens if a loan account becomes NPA ?

What is Non-Paying Assets or NPA? When a person takes a loan from a bank or financial institute and fails to repay, then the loan goes into the NPA category. The bank has no choice other than to seize the mortgaged assets and selling them. There could be complications in this process because the asset will have to be sold at a lower price than the original. When a loan goes into the category of NPA, banks can transfer the loan into equity. It will bring new promotors or management. It is called SDR or Strategic Debt Restructuring Scheme. It has been a good solution to control the npa in India. The bank can also help out the borrowers by restructuring the loan. Alternatively, the bank or financial institution can take the following steps: Extend the repayment time Waive some amount of loan or reduce the interest rate Combine these processes You can sell the  NPA to the Asset Reconstruction Company(ARC). It procures the bad loans or non-performing assets that commercial or other bank...

Private Equity Firms In India | Private Equity

  Private Equity Firms In India It comprises of investment funds from institutions and high net worth individuals. We have a strategic approach to define our clients capital financing objectives and understanding the debt and equity requirements. We Render To assist Companies in evaluating and finding the right partners who not only bring in growth capital but also provide significant value add in the scaling up of the process. We specialize in facilitating such arrangement of funds for NPA accounts too. We have developed rich network and working relations amongst Private Equity Firms In India Investors, Investment Bankers, Industry Advisors, Financial Institutions and Banks all over the world. Our Associate Master Credit Banking Solutions Pvt Ltd is operating under the able mentorship of Mr. Murlidharan having a rich experience of 30 years, in advising Indian Corporates (Government Owned or Private Owned) and Foreign Companies. His track record in the field of Risk Advisory &...