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NPA of Cash credit Account
3 months ago
I have two accounts with bank one is home loan and another is cash credit loan .Unfortunately the cc loan account renewal has got delayed and this has turned NPA. Because of this my home loan account has also turned NPA which is not linked with cash credit account. Now bank is threatening me to take possession of my house because of my cash credit turning to Otherwise my home loan is standard account.
Can the bank issue sarfaesi notice for home loan account which is standard account and is not linked with cash credit. Only my cash credit is npa due to renewal delay.
Bank says if one account turns NPA all other accounts turn NPA even if they are paid normally.
Can the bank issue notice for home loans because of cash credit delegated to NPA.
A.Dear Client,
Both cash credit accounts and home loans are considered debt and once the repayment of a loan stops or bounces for consecutive 3 installments, The Bank initiates a routine course of action for recovery of the loan from the borrower marking both the loan/debt as a bad loan/NPA for recovery of debt from the borrower following the provision under the SARFAESI Act and the order of Debt Recovery Tribunal directing attachment of secured assets of the borrower. However, you may negotiate or settle your dues against loans by following the steps like lowering your interest rate, arranging for a reduced interest rate is one of the most common requests a defaulter borrower can make to the Bank, creating or restructuring a repayment plan or extending the tenure of repayment of a loan, looking for debt forgiveness. considering loan consolidation, offering a one-time settlement payment. Following these steps, you may write an application requesting for settlement of dues to the concerned Bank stating why you cannot repay your outstanding dues lying against the loans. Also, write that you want to explore alternative repayment terms. Specify the amount that you can pay, as well as what you expect from the creditor Bank in return. A good starting point for negotiation could be offering around 30% of the amount that you owe. However, if they did not pay any heed to your appeal, then you need to bring the matter to the notice of the concerned Bank and its higher authority and the regulatory authority, RBI online on its grievance redressal portal under the integrated Banking Ombudsman Scheme either online or offline. A complaint can be made at https://cms. rbi.org.in or by calling the helpline number 14440. The complaint may be lodged online or by filing an offline complaint and submitting the same at the Centralised Receipt and Processing Centre (CRPC) at RBI, 4th Floor, Sector 17, Chandigarh, PIN-160017. Further, a quick counseling session with a certified credit counselor can help you to discover your options and choose the right path to resolve or settle the matter.
Both cash credit accounts and home loans are considered debt and once the repayment of a loan stops or bounces for consecutive 3 installments, The Bank initiates a routine course of action for recovery of the loan from the borrower marking both the loan/debt as a bad loan/NPA for recovery of debt from the borrower following the provision under the SARFAESI Act and the order of Debt Recovery Tribunal directing attachment of secured assets of the borrower. However, you may negotiate or settle your dues against loans by following the steps like lowering your interest rate, arranging for a reduced interest rate is one of the most common requests a defaulter borrower can make to the Bank, creating or restructuring a repayment plan or extending the tenure of repayment of a loan, looking for debt forgiveness. considering loan consolidation, offering a one-time settlement payment. Following these steps, you may write an application requesting for settlement of dues to the concerned Bank stating why you cannot repay your outstanding dues lying against the loans. Also, write that you want to explore alternative repayment terms. Specify the amount that you can pay, as well as what you expect from the creditor Bank in return. A good starting point for negotiation could be offering around 30% of the amount that you owe. However, if they did not pay any heed to your appeal, then you need to bring the matter to the notice of the concerned Bank and its higher authority and the regulatory authority, RBI online on its grievance redressal portal under the integrated Banking Ombudsman Scheme either online or offline. A complaint can be made at https://cms. rbi.org.in or by calling the helpline number 14440. The complaint may be lodged online or by filing an offline complaint and submitting the same at the Centralised Receipt and Processing Centre (CRPC) at RBI, 4th Floor, Sector 17, Chandigarh, PIN-160017. Further, a quick counseling session with a certified credit counselor can help you to discover your options and choose the right path to resolve or settle the matter.
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A.Dear Client,
The bank's threat to issue SARFAESI notice for your home loan account due to the delay and NPA status of your cash credit account may not be accurate. SARFAESI Act (Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act) allows banks to take possession of assets against loans that have turned NPA, but it generally applies to the specific account in question. If your home loan is paid regularly and is not linked to the NPA cash credit account, it should not automatically turn NPA. It's advisable to consult with a legal professional to clarify the specific provisions of your loan agreements and the SARFAESI Act in your situation. Additionally, engage with the bank to seek clarification on their stance and request documentation explaining how the home loan, which is a separate account, is being affected by the NPA status of the cash credit account. Clear communication and legal advice will help you understand your rights and options in this situation.
Thankyou
The bank's threat to issue SARFAESI notice for your home loan account due to the delay and NPA status of your cash credit account may not be accurate. SARFAESI Act (Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act) allows banks to take possession of assets against loans that have turned NPA, but it generally applies to the specific account in question. If your home loan is paid regularly and is not linked to the NPA cash credit account, it should not automatically turn NPA. It's advisable to consult with a legal professional to clarify the specific provisions of your loan agreements and the SARFAESI Act in your situation. Additionally, engage with the bank to seek clarification on their stance and request documentation explaining how the home loan, which is a separate account, is being affected by the NPA status of the cash credit account. Clear communication and legal advice will help you understand your rights and options in this situation.
Thankyou
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