A non-performing asset (NPA) refers to a classification for loans or advances that are in default or in arrears. A loan is in default when the lender considers the loan agreement to be broken and the debtor is unable to meet his obligations. 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.
The Securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (also known as the SARFAESI Act) is an Indian law. It allows banks and other financial institution to auction residential or commercial properties (of Defaulter) to recover loans.
Any borrower, who is under a liability to a bank or financial institution under a security agreement, makes any default in repayment of secured debt or any installment thereof, and his account in respect of such debt is classified by the bank or financial institution as non-performing asset, then, the bank or financial institution may require the borrower by notice in writing to discharge in full his liabilities to the bank or financial institution within 60 days from the date of notice failing which the bank or financial institution shall be entitled to exercise all or any of the rights under sub section (4).
Under section 13(4), after the accounts are being declared as NPA and the representation of the borrower /guarantor is rejected, the Bank or Financial Institution can take possession the property under Section 13(4) with rule 9 of the 2002 rules to recover its outstanding debt.
Reserve price is the minimum price the Bank or Financial Institution is willing to sell their property to be auctioned.
EMD means ‘Earnest Money Deposit’ or ‘Pre Bid Amount’ to be paid for participation in Bank auction. The amount is usually 10% of the Reserve Price.
yes, if you are not the highest bidder in bank auction, then the EMD amount will be refunded to you.
Buying a bank auctioned property comes with lower price which is 25 to 30 percent cheaper than the prevailing market price. Location of these properties are often good which make them attractive propositions for all.
In AUCTION PROPERTY INDIA, we are going to provide full details of the properties in our site. We provide PDF files and images for each property where you can find out the contact details of the official person from that particular bank who will guide you how to participate in a bank auction. Also from that PDF files you can find out E-AUCTION sites where you have to do registration, submit the relevant documents, pay the Earnest Money Deposit (EMD) amount to the bank and bid on the property on the date of its auction.
ID proof, Address proof, Annexure 3/ Declaration Form and Annexure 2 / Details of the Bidder.
After successful registration on our site by Email ID or Phone number it is our duty and responsibility to provide notification about fresh bank auctions details by Email or other form of communication.