(Querist) 02 September 2022
This query is : Resolved
Sir , after completion of my graduation I started a manufacturing unit by taking cgtmse loan of 12 lac in 2019 . But due to covid 19 and lockdown amount was spent in labour wages , electricity charges, premises rent etc . Now Currently I have no money to pay . My OD account will become NPA after 30 days . What are further processing? I have strong intention to repay bank as soon as possible but currently have no money. Shall I go jail or there is any auction of rental property ? Please advise
(Expert) 12 September 2022
The loan was guaranteed under the Government credit guarantee scheme under CGTSME. Does whether Bank lodge a claim for recovery of default under the guarantee scheme in time and all criteria were fulfilled? If so Bank would be reimbursed a major portion of the default by the corporation. When you have nothing to pay, what Bank can recover from you? What happened with the fire Insurance claim? Normally Bank loan is associated with the necessary fire insurance.