NPA Takeover Loans
Transform Your NPA Challenges into Growth
Global Syndicate Finance offers expert solutions to help businesses struggling with NPA accounts. Revive your operations and unlock your true potential with our tailored strategies designed to turn challenges into opportunities. Let us guide you toward sustainable growth, long-term success, and financial stability.
Global Syndicate Finance: Your Partner in NPA Solutions
Global Syndicate Finance is India’s leading NPA finance company, specializing in comprehensive financial services for clients facing stress or non-performing asset (NPA) challenges. Through our dedicated NPA Resolution Vertical, we address the complexities of NPA management with tailored solutions, including NPA Retrieval, NPA Takeover, Transfer of NPA Accounts, Loans for NPA, NPA OTS Funding, and MSME Loans for NPA Accounts. With deep industry expertise and a commitment to delivering results, we empower businesses to revive their financial health and unlock new growth opportunities. Collaborating closely with RBI- and SEBI-registered partners, we secure the best NPA funding options and work hand-in-hand with stressed companies to facilitate Finance for NPA Loans, paving the way to financial stability and sustainable growth. Let us support you in overcoming challenges and achieving long-term success.
We believe in the 4-R Strategy
Recognition
Evaluate and scrutinize notices & related documents received from Financial Institutions.
Resolution
Creating strategy and preparing resolution plans, OTS proposals, and revival plans for your business.
Excel Through Innovation
We embrace a visionary mindset, driving success by creating new opportunities through innovation and entrepreneurship.
Reform
Helping with the business turnaround, legal charges, and replying to all legal notices.
Recapitalization
Infusing capital and reviving your business.
Excel Through Innovation
We embrace a visionary mindset, driving success by creating new opportunities through innovation and entrepreneurship.
What is an NPA, and what are the implications of a loan turning into one?
When a loan account stops generating returns for the bank or when a borrower fails to make EMI payments for three or more consecutive months, the bank declares the account as a Non-Performing Asset (NPA). This status not only impacts the borrower’s financial credibility but also initiates a chain of serious consequences.
Upon missing three consecutive EMIs, the bank issues a Loan Recall Notice, marking the borrower’s default. The borrower can either negotiate through a debt restructuring process or face legal action under the SARFAESI Act, 2002. In legal proceedings, the lender typically takes possession of collateral assets, such as factories, houses, or other secured properties, and may proceed with liquidation. For businesses, this could result in a complete operational shutdown, significantly impacting their viability and market standing.
Additionally, the bank’s actions, including property notices and auction processes, can tarnish a business’s reputation. The market value of collateral properties often drops due to the stigma of legal action, while creditors may also initiate recovery measures, further compounding the financial distress.
Under RBI guidelines, NPAs are classified at the borrower level, not by individual loans. This means that if even one loan is classified as an NPA, all other loans with the same borrower could also be affected. To avoid this, borrowers must ensure timely repayment of all loans.
At Global Syndicate Finance, we understand the complexities of NPA situations and provide tailored solutions to help businesses navigate these challenges, regain stability, and safeguard their future.
What are the Legal Notices Banks can issue to NPA Account Holders? or What banks will do legally when someone becomes an NPA?
Loan Recall Notice: A Loan Recall Notice is a notification issued by the bank after declaring an account as an NPA (Non-Performing Asset). It requires the borrower to repay the entire outstanding loan amount within a specified timeframe.
Notice 13(2): Under the SARFAESI Act, 2002, the Bank has the authority to issue Notice 13(2) following the demand notice. This notice informs the borrower about the total outstanding amount owed to the bank and provides sixty days for repayment. This stage requires the borrower to address the issue promptly and effectively.
Notice 13(4): Following the 13 (2) notices, the Bank can issue Notice 13(4), often referred to as the “Symbolic Possession Notice,” under the SARFAESI Act, 2002. This notice informs the borrower that the specified assets/properties now legally belong to the bank. The bank may proceed to physically take possession of the asset/property or initiate legal proceedings, such as asset auctions, to recover the outstanding loan amount.
What are the options available to the borrower after being NPA?
Loan Restructuring: The borrower can request their bank to restructure their NPA (Non-Performing Asset) loan. This option provides an extension for repayment, allowing the borrower to enjoy banking facilities.
Legal Remedies: The borrower has the option to approach the respective District or State Debt Recovery Tribunal (DRT) courts to seek additional time for loan repayment and halt the bank’s proceedings.
Refinancing NPA Loan: The borrower can opt for refinancing their NPA loan, which involves paying off the entire outstanding dues to the bank and resolving the issue. The borrower can arrange funds independently or explore financing options available in the market.
OTS (One Time Settlement): If the borrower has the means to repay their NPA loan, they can negotiate a one-time settlement with the bank.
Selling the Collateral: The borrower can pursue two approaches in this regard. Firstly, by selling an asset or property that is not mortgaged with the bank, the borrower can arrange funds independently without involving the bank and repay the loan. Secondly, if the asset or property is mortgaged, the borrower can directly communicate their intention to the bank, expressing their plan to pay off the debt through the sale of collateral.
How we will help you?
At Global Syndicate Finance, we assist you in raising NPA funding through our network of in-house investors registered under RBI/SEBI. These investors specialize in taking over fund-based or non-fund-based limits from companies, helping you safeguard your valuable property acquired by the bank under the SARFAESI Act, 2002.
For further assistance with private finance for NPA accounts, NPA restructuring, NPA settlement, or NPA funding for NBFCs, consult with our experienced Financial Advisors, who are dedicated to providing tailored solutions to meet your needs.