(Querist) 02 April 2011
This query is : Resolved
Respected expert, I take loan amount of Rs.30000/- for Micro Financial Institution.and since 3 months I am defaulting in depositing the interest.
Now my query is that the financial institution has power to take action against me as per the provisions of SARFAESI ACT.2002.??? i.e. what is the minimum loan amount that attract the provision of SARFAESI Act.
For defaulters there are many legal actions possible, why you do not want to repay.
(Expert) 02 April 2011
Banks & FIs can invoke SARFAESI Act if the due is more than Re.One lakh and if the account is NPA. NOT RS.TEN LAKHS. Hence,for your Rs.30,000/-loan, the bank can add interests and charges and make it more than one lakh, so as to invoke SARFAESI. Any how taking loans and making it defaulted is not at all advisable.
(Querist) 03 April 2011
THANK'S YOU ALL FOR REPLY!! special thank to Rajuji for clear guidance.
(Expert) 08 April 2011
thanks for information