Npa related
VIRESH SHINDE
(Querist) 15 June 2023
This query is : Resolved
If proprietary concern of an individual is treated as NPA, can Bank classify his joint home loan account with his wife who is also earning member as NPA. If yes, how?
kavksatyanarayana
(Expert) 15 June 2023
I opine, his wife is also a joint loan holder and as an earning member, she has to repay the loan.
T. Kalaiselvan, Advocate
(Expert) 16 June 2023
If the home loan is declared as NPA then the bank will initiate legal action as per procedures of law for recovery against the applicants.
Dr. J C Vashista
(Expert) 16 June 2023
It is the loan account which might have been declared NPA but not property ? Recheck.
The reasons for contributing a loan to be declared as non-performing assets (NPAs ) are as follows:
a) Bank lending to those whose creditworthiness is not guaranteed and carries much higher risk.
b) Banks cannot reduce their losses by fully understanding the adequacy of the bank in terms of a loan or capital loss over a while.
c) Funds are being redirected elsewhere by the company’s promoters.
d) Banks try to finance projects that are not effective.
e) There is not enough way for commercial banks to collect and distribute credit information.
f) Unskilled recovery of loans from unexpected borrowers.
When a loan is declared as NPA then the bank will initiate legal action as per procedures of law for recovery against the applicant(s) as well as guarantor(s) , irrespective of the fact that husband and wife (borrowers) are working
