• EMI bounce

I have bounced my EMI of housing loan consecutive 4 months , some body told me now the NPA guidelines is 180 days which was earlier 90 days is it true and If I pay some amount every 4-5 months my case will not go in NPA.
Asked 2 years ago in Property Law
Religion: Hindu

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16 Answers

No you have wrong information bank shall issue you a demand notice after NPA is done which is done after 90 days of default within 60 days you need to clear all your loan amount.

Of still you have not received notice talk with bank and clear pending emi otherwise the proceeding sarfaesi act will start.

Shubham Jhajharia
Advocate, Ahmedabad
25176 Answers
103 Consultations

5.0 on 5.0

you should make payment at the earliest failing which bank would levy penal charges on you as per terms of your agreement

2) bank would issue you notice under section 13(2) of SARFESI act . bank would seek to auction your flat for failure to repay the dues

3) merely because recognition of account as NPA is 180 days should not lull you into sense of complacency

Ajay Sethi
Advocate, Mumbai
76816 Answers
4609 Consultations

5.0 on 5.0

Dear Sir

You should make at least one full instalment in a quarter of banking line. Then the total amount due may go up with interest but the instalment may be post-poned. for eg. Jan 2018 to Mar 2018 make payment on Feb 2018 and leave it. It will not be posted for NPA

Feel free for any assistance

Shettar SS
Advocate, Bangalore
182 Answers
1 Consultation

4.0 on 5.0

Dear Client,

If the borrower does not pay dues for 90 days after end of a quarter; the loan becomes an NPA and it is termed as “Special Mention Account”. If this loan remains SMA for a period less than or equal to 12 months; it is termed as Sub-standard Asset. In this case, bank has to make provisioning as follows:

15% of outstanding amount in case of Secured loans

25% of outstanding amount in case of Unsecured loans

Duration for declaring NPA is still 90 of days and pending at RBI for extension. Earlier ti was 180 days. The period of non performance of 180 days has been reduced to 90 days with effect from March 31st, 2004.

Bank will issue notice of 60 days under sarfaesi act.

Yogendra Singh Rajawat
Advocate, Jaipur
20023 Answers
28 Consultations

4.5 on 5.0

1) Running away from the lender is not an option. Banks/lending institutions understand that there could be genuine reasons because of which the borrower is unable to make timely payments. For e.g. the loss of a job, or an accident that may have confined the borrower to his / her bed.

2) Banks are more likely to consider your situation if you have always paid your EMIs on time before the things took an unfortunate turn. Based on how genuine your intent and case is, the bank may look for various feasible solutions that are mutually acceptable. The borrower will benefit because he will be able to retain his asset and the bank will also benefit because this agreement will prevent an addition to its non-performing asset (NPA) portfolio.

3) The various options that can be worked out include:

a) Rescheduling your debt: After having analysed your financial position, if the bank feels that the quantum of the EMI is what is troubling you, they may be willing to reschedule your debt by extending the loan tenure. That will bring down the monthly EMI commitment, though it will mean more interest outgo in the long-term. However, you should consider the immediate relief it can bring to your current situation. When the tide turns and you are facing better times you can try negotiating with your bank and revert to your old or higher EMI or even prepay your loan. Closing your loan early can help to save excessive interest outgo as long as the bank doesn’t levy a heavy prepayment penalty.

Ganesh Kadam
Advocate, Pune
10646 Answers
93 Consultations

4.9 on 5.0

Better to make payment earlier to avoid penal charges. Bank will issue you a notice and will seek to auction your property under SARFAESI ACT. If you fail to make payment of principal or interest for 90 days the loan is considered to be NPA. You have been misguided regarding NPA.

Swarnarka Chowdhury
Advocate, Mysore
1878 Answers
5 Consultations

5.0 on 5.0

You are absolutely wrong, its 90 days.

Ramakant Singh
Advocate, Delhi
36 Answers
4 Consultations

4.0 on 5.0

EMI doesnot always attract NPA. It also attracts S.25 of Payment and Settlement Act, which can lead to initiation of criminal proceeding. It is suggested that you immediately clear all your installments.

Debasmita Mitra
Advocate, Kolkata
33 Answers

4.0 on 5.0

Dear Sir,

You are right. The Reserved Bank of India has enlarged NPA declaration to 180 days. Stay at peace.

Kishan Dutt Kalaskar
Advocate, Bengaluru
5519 Answers
192 Consultations

4.8 on 5.0

1. No. It is not the right information that the time period of default in making payment of EMIs for being declared as NPA has been extended to 180 days.

2. The lending bank will now declare your loan account as NPA and issue SARFAESI proceedings.

3. It will be prudent on your part to pay at least one EMI (which should cover the interest of the defaulting EMI amounts) now so that you get reprieve for another 90 days for your loan account to be declared as NPA.

Krishna Kishore Ganguly
Advocate, Kolkata
24411 Answers
680 Consultations

5.0 on 5.0

Don't do that pay your EMI regularly to keep your credit score good.

Prashant Nayak
Advocate, Mumbai
20464 Answers
38 Consultations

4.4 on 5.0

Yes, you have rightly heard about the NPA deadline of having been extended to 180 days.

Keep paying them some amount every now and them.

The above is the only way to keep them at bay.

Vibhanshu Srivastava
Advocate, New Delhi
9048 Answers
165 Consultations

5.0 on 5.0

If you pay the interest flof 4 months also you will not qualify for NPA

Anwar Zaidi
Advocate, Mira Bhayandar
231 Answers

4.5 on 5.0

- 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.

- For commercial loans , NPA period is only 90 days overdue

- For any consumer loans like housing loan etc 180 days overdue.

Since, you use to pay some amount after every 4-5 months at a time, so better to contact your bank for continue, and not declare your account under NPA.

Mohammed Shahzad
Advocate, Delhi
4046 Answers
43 Consultations

5.0 on 5.0

You do not go by somebody's words.

You should always confirm this information from the bank itself who will be friendly to encourage your such queries especially when you express your distress situation with an assurance to repay the loan amount at the earliest possible.

They may may look into the rules and discretionary powers to help you out of crisis too.

T Kalaiselvan
Advocate, Vellore
66814 Answers
882 Consultations

5.0 on 5.0


That depends on your terms with the bank. If you had a word with the bank that you will be paying certain amount in 4-5 months then it is ok, the same will not be declared NPA but the bank may impose penalty on you for the delay payment


Anilesh Tewari
Advocate, New Delhi
17778 Answers
296 Consultations

5.0 on 5.0

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