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SARFAESI Act
2 years ago
A demand notice under 13(2) was issued for our loan account in February,2019. We cleared all the due and regularised the account. However, it is about to turn NPA again in May end when my 4th installment becomes due, as we were unable to pay EMI’s. I wanted to know whether there will be another demand notice giving us 60 days or will there be possession straightaway.
A.Hi,
The borrower has a right to adequate notice and the account is classified as a non-performing asset (NPA) if the repayment is overdue by 90 days. In such cases, the lender has to first issue a 60-day notice to the defaulter and this process has to be duly followed for every default.
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The borrower has a right to adequate notice and the account is classified as a non-performing asset (NPA) if the repayment is overdue by 90 days. In such cases, the lender has to first issue a 60-day notice to the defaulter and this process has to be duly followed for every default.
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Ayantika Mondal @ Prime Legal
Responded 2 years ago
A.Hi,
The creditor has a right to fair notice, and if the repayment is 90 days late, the account is known as a non-performing asset (NPA). In such situations, the lender must first give the defaulter a 60-day notice, and this procedure must be followed for each default.
If you find this answer helpful, please rate my answer. Thank You.
The creditor has a right to fair notice, and if the repayment is 90 days late, the account is known as a non-performing asset (NPA). In such situations, the lender must first give the defaulter a 60-day notice, and this procedure must be followed for each default.
If you find this answer helpful, please rate my answer. Thank You.
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Ankur Goel @ Complete Law Shield
Responded 2 years ago
A.there will be another new demand notice giving 60 days
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