Definition
A loan or advance where: (i) interest and/or instalment of principal remains overdue for more than 90 days in respect of a term loan; (ii) the account remains "out of order" for more than 90 days in respect of an overdraft/cash credit; or (iii) the bill remains overdue for more than 90 days in case of bills purchased/discounted. NPA classification is a prerequisite for SARFAESI enforcement.
Related Terms
SARFAESI
The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, …
Secured Creditor
A creditor holding a security interest over the assets of the borrower. Under SARFAESI, "secured cre…
Default
Failure to repay loan installments or interest as per the repayment schedule. Under SARFAESI, defaul…
ARC
Need Expert Advice on NPA (Non-Performing Asset)?
For specific advice on how NPA (Non-Performing Asset) 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