The SARFAESI Act (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act) is a powerful legal tool that enables NBFCs to recover bad loans without lengthy court proceedings.
Who Can Use It?
NBFCs with an asset size of ₹100 crore or more can now utilize the SARFAESI Act to recover non-performing assets (NPAs) of ₹50 lakh or more, bypassing traditional court delays.
Why It Matters:
Despite its potential, many NBFCs remain unaware of how to strategically and effectively implement this mechanism for recovery. Here’s what it offers:
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Direct Possession & Auction: NBFCs can take control of secured assets and initiate auctions without waiting for court approval.
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Clear Recovery Timeline: The Act outlines structured procedures for notices, possession, and sale, cutting legal complications.
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Enhanced Financial Protection: Greater control over asset recovery improves the financial health and stability of NBFCs.
Don’t Let Bad Loans Drain Your Resources
Maximize the power of the SARFAESI Act to improve cash flow and reduce NPA-related stress.
Need Expert Guidance?
Our team provides end-to-end support in SARFAESI compliance, recovery strategy, and legal execution for NBFCs.
📞 Contact us today for a free consultation: +91 93113 47006
📩 Email: hello@GenZCFO.com