Are you facing financial crunch and fearing to get labeled as NPA (Non-Performing Asset)? Well, there is no need to get into the pressure of banks or financial institutions.

There is no need to give them a complete walkover. There are several ways to sustain the pressures and get some time to correct the situation and bring back your business into action.

You should get the notice


You are a defaulter and not a criminal. The bank must follow the proper process and give sufficient time to repay the dues.

Under the SARFAESI Act 2002, the bank classifies an account as NPA if the repayment is due for more than 90 days.

The lender is supposed to issue the 60-day notice to the defaulter. If the borrower doesn’t pay within the notice period, the bank may proceed for selling the asset.

There is a right to ensure fair value


Before auctioning the property to recover the dues, the bank has to issue one more notice. It specifies the fair value of the asset as assessed by internal valuers.

You have the right to object if you feel that the property is undervalued. It is also possible that you find a buyer who is ready to give a price that is higher than the value estimated by the internal valuer.

You have the right to be heard


Eve during the notice period, you have the right to make the representation to the concerned officer to put forth the objection.

The officers need to reply within a week or so, with valid reasons of rejection.

You must be treated well


As mentioned earlier, you are a financial defaulter and not a criminal. Hence, you have the right to get proper treatment.

First, you should get calls from the banks. The callers can’t humiliate, harass, or intimidate you in any case. Even there are norms for calling hours by the representative.

Violation of these rules will have severe implications if you launch a complaint against it.

Thus, there is no need to go under the pressure of banks. You have various ways of avoiding it.