Secured Loans: Repossession and Enforcement
For secured loans, the bank has a “Nuclear Option” called the SARFAESI Act. This allows them to seize your property without even going to court.
- The 60-Day Notice: Once your account is an NPA, you get a final 60 days to pay the full dues.
- Physical Possession: If you don’t pay, the bank can take physical control of your home or car.
- Auction Loss: Seized assets are often auctioned at a Distress Value, which could be much lower than the market rate.
Watch this video to understand the legal timeline of repossession and how to save your home.