I took a loan form Indian bank
9 months ago
I took a loan form Indian bank and became NPA due to a medical condition and Covid and now the bank has set an e-auction to sell it. How can I stop the Bank E-auction as I am ready to pay 80% of the amount and need some more time
A.Dear Client,
Usually, the Bank auction process is initiated when the borrower defaults on 3 consecutive Home Loan EMI's marking the loan NPA and started a routine course of action for recovery of debt from the borrower. A notice is served to the customer to respond within 60 days that why the bank should not initiate an auction of property due to default in payment. The borrower can respond to the said notice informing the payment of the debts/dues with suitable terms and accordingly, the e-auction notice is withdrawn. So, you need to visit the bank to negotiate the payment of dues in easy terms to withdraw the e-action notice.
Usually, the Bank auction process is initiated when the borrower defaults on 3 consecutive Home Loan EMI's marking the loan NPA and started a routine course of action for recovery of debt from the borrower. A notice is served to the customer to respond within 60 days that why the bank should not initiate an auction of property due to default in payment. The borrower can respond to the said notice informing the payment of the debts/dues with suitable terms and accordingly, the e-auction notice is withdrawn. So, you need to visit the bank to negotiate the payment of dues in easy terms to withdraw the e-action notice.
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A.Dear client,
A default does not strip you of your rights or make you a criminal. Banks have to follow process and give you time to repay dues before repossessing your assets to realise the arrears.
Typically, banks initiate such proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests (Sarfaesi) Act. If the borrower’s account is classified as a non-performing asset (NPA), where repayment is overdue by 90 days, the lender has to first issue a 60-day notice to the defaulter.
If the borrower fails to repay within the notice period, the bank can go ahead with sale of assets. However, in order to sell, the bank has to serve another notice.
The lender starts the process of auctioning your property to recover dues if you fail to clear what you owe or respond during the 60-day notice period. However, before doing so, they will have to issue another notice specifying the fair value of the secured asset as assessed by the banks’ valuers, along with other details like reserve price, date and time of auction. The borrower can object if the property is undervalued. He can justify his objection by conveying any better offer that he may have.
During the notice period, you can make your representation to the authorised officer and put forth your objections to the repossession notice. The officer has to reply within seven days, giving valid reasons if he rejects the representation and objections raised by the borrower
A default does not strip you of your rights or make you a criminal. Banks have to follow process and give you time to repay dues before repossessing your assets to realise the arrears.
Typically, banks initiate such proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests (Sarfaesi) Act. If the borrower’s account is classified as a non-performing asset (NPA), where repayment is overdue by 90 days, the lender has to first issue a 60-day notice to the defaulter.
If the borrower fails to repay within the notice period, the bank can go ahead with sale of assets. However, in order to sell, the bank has to serve another notice.
The lender starts the process of auctioning your property to recover dues if you fail to clear what you owe or respond during the 60-day notice period. However, before doing so, they will have to issue another notice specifying the fair value of the secured asset as assessed by the banks’ valuers, along with other details like reserve price, date and time of auction. The borrower can object if the property is undervalued. He can justify his objection by conveying any better offer that he may have.
During the notice period, you can make your representation to the authorised officer and put forth your objections to the repossession notice. The officer has to reply within seven days, giving valid reasons if he rejects the representation and objections raised by the borrower
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