A non- performing asset (NPA) is a loan or advance for which the principal or interest payment remained overdue for a period of 90 days.

Banks are required to classify NPAs further into Substandard, Doubtful and Loss assets.

Substandard assets: Assets which has remained NPA for a period less than or equal to 12 months.

Doubtful assets: An asset would be classified as doubtful if it has remained in the substandard category for a period of 12 months.

Loss assets: As per RBI, “Loss asset is considered uncollectible and of such little value that its continuance as a bankable asset is not warranted, although there may be some salvage or recovery value.”


Although the most common nonperforming assets are term loans, there are six other types of NPAs:

  • Overdraft and cash credit (OD/CC) accounts left out-of-order for more than 90 days
  • Agricultural advances whose interest or principal instalment payments remain overdue for two crop/harvest seasons for short duration crops or overdue one crop season for long duration crops
  • Bill overdue for more than 90 days for bills purchased and discounted
  • Expected payment is overdue for more than 90 days in respect of other accounts
  • Non-submission of stock statements for 3 consecutive quarters in case of cash-credit facility
  • No activity in the cash credit, overdraft, EPC, or PCFC account for more than 91 days



It is not the borrower who is always at fault for NPA. Most of the times it is because of change in Banks’ policies, change in Government’s policies, change in business environment or unforeseen personal problems. Yes, there are wilful defaulters as well.


We devise a holistic approach to NPA cases in such a way that the business becomes sustainable and profitable.

  1. Consultation:

We hold one to one meeting with the borrower for thorough knowledge of the case. Here the borrower has to be fully opened up and should not hide anything to us.

  1. Comprehensive Case Study:

We start studying and scrutinizing the NPA case deeply and accordingly devise the strategy to handle the NPA situation.

  1. Handling the legal if any:

We handle the legal issues relating to the Court, NCLT, ARC with regard to NPA through our legal team.

  1. OTS negotiation:

We discuss the strategy suitable to the NPA case with the borrower and start discussion & negotiation with the bank for OTS.

  1. NPA loan agreement:

Simultaneously we find out investors / lenders- mostly Private lenders who are willing to invest / lend. Lending agreement is made / registered.

  1. NPA Payment:

OTS payment is made to the bank and property documents given to lender’s custody.


  1. Balance loan disbursement:

The balance loan amount is disbursed to the borrower for running their business’ operational activities.



  • NPA Financing is the most challenging activity. It has been experienced that in most cases the borrower is not really willing to get out of NPA status by paying back lenders money, hence playing with the financial consultants and the lenders.
  • Therefore, we take non-refundable registration fee from borrower.
  • LENDING: Loan amount is arranged from Private lenders against collateral. The details of the lending can be discussed with the concerned borrower.



  • Profit Sharing: Investment is arranged from investors with the guaranteed rate of return and profit sharing whichever is higher, hence the investor enters into your company as a partner/director.
  • Take Over: We also arrange investors who will be clearing all the NPA dues and other liabilities. The investor will take over the control of the company and will pay the balance amount to the current owner.