Definition
Under the IBC, a person to whom a "financial debt" (money borrowed with interest) is owed by the corporate debtor. Banks, NBFCs, bondholders, and debenture holders are financial creditors. Financial creditors form the Committee of Creditors and have voting rights on the resolution plan. Distinguished from operational creditors (suppliers, employees) who have limited IBC rights.
Need Expert Advice on Financial Creditor?
For specific advice on how Financial Creditor applies to your debt recovery matter, consult Advocate Subodh Bajpai — LLM, MBA (XLRI Jamshedpur). 25+ years of exclusive banking and debt recovery practice across DRT, SARFAESI, IBC, and NI Act.
Defined by Advocate Subodh Bajpai, Senior Partner, Unified Chambers and Associates