NPA-Non Performing Assets

Product Description

NPA stands for Non-Performing Asset, which refers to a loan or advance where the borrower has failed to make scheduled payments of interest or principal for a specified period, typically 90 days or more. In the banking sector, NPAs represent a risk to the lender because they indicate that the borrower is unable to meet their debt obligations.

When an asset is classified as an NPA, it affects the bank's profitability since it no longer generates income, and the chances of recovering the loan diminish. Banks often take steps such as restructuring the loan, legal action, or asset recovery processes to manage NPAs and minimize losses.

We arrange funds for NPA for a short duration, at a slightly higher rate of interest. This enables the Entrepreneur come out of NPA situation.