Takeover of Asset reconstruction company loan
Takeover of ARC Loan benefits the clients by closing the previous loan of asset Reconstruction Company which was generally high cost & keeps the NPA status alive so the client can move to a better loan arrangement with us & came out the NPA status completely.
We transfer the arc loan giving a lower ROI & reschedule the monthly repayments and allow the client to restart his financial journey with good tracks and enjoy the standard banking features. This funding is available in all major cities of India.
If you are an borrower that needs to refinance your existing loan of ARC, we can help. Our team has extensive experience in providing refinancing solutions to clients across various sectors. We understand that each client has unique financing requirements and we work closely with our clients to tailor solutions to their specific needs.
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What is Asset Reconstruction Company (ARC)
Asset Reconstruction Companies (ARC) are financial institutions registered under RBI, their main work is to buy bad loan portfolio/non-performing assets from banks & NBFCs, then ARC companies recover the loan from the borrower in either way by enforcing policies, liquidating underlying securities or rescheduling the repayment method. The ARC companies are set up under SARFASI Act 2002. The ARC can take over only secured debts that have been classified as non-performing assets (NPA). Banks clean their balance sheet from NPAs by selling them to asset reconstruction companies.
ARC Loan Process
When a loan account becomes NPA it is converted from Standard Loan to NPA Account. It will create a lot of financial issues for borrowers and works as a barrier to the financial & business health of the company. It also creates problems for banks as this will increase the bad loans in the balance sheet while the profit decreases. So in favor of both borrowers and banks RBI introduces ARC for taking over bad loans from banks and ultimately banks are able to keep their balance sheet clean.
ARC Finance -ARC buys NPA accounts from banks & NBFCs, then ARC companies recover the loan from the borrower in either way by enforcing policies, liquidating underlying securities or rescheduling the repayment method. But the loan in ARC remains as in NPA status and this can only be removed once the account with NPA closed completely. Within the loan in ARC, no other bank or other financial institution is able to extend any loan facility to the borrower. This will refrain borrowers to restart their financial journey & to enjoy standard banking loan facilities.
In order to become a standard account from ARC Loan, the borrower needs to go for another round of financing, but due to strict financing policies, no bank or nbfc can refinance the Arc loan. And to unlock the opportunity of becoming a standard account & enjoy banking facilities, the borrower requires an intermediary finance platform that eventually closes the NPA status of the client & gets it ready for banking finance.
Fund Source India plays a vital role by transferring ARC loans to one of RBI(Reserve Bank of India) registered financial institutions, which finance ARC loans at lower rates & make it a substandard account, which eventually converts into the standard by maintaining a good repayment track.
After this financing, the client can easily move to standard banks or NBFCs and enjoys standard banking products hence restarting their financial journey
We help clients to transfer ARC loan or refinance ARC loan by transferring loan to one of our NBFC & giving clients following benefits :
- Better ROI
- Reshceduling of Repayment Tenor
- End of NPA Status
- Improvement in Cibil Score
- Available PAN India
- Pay directly to ARC
- To start healthy financial & business life
What is ARC Private Lending?
ARC Private Lending is a new loan facility to take over the loans running in ARC companies and to provide the borrower with better interest rates and repayment terms like monthly EMIs and moratorium periods. This new loan can be paid directly to ARC to close their liability and all the securities and collateral transferred to the new lender.
What are ARC Loans?
ARC loans are loan accounts that are declared NPA in the previous bank/NBFC but are now assigned to an ARC company for the recovery of loans and to lower the NPA ratio in the banker's balance sheet. The ARC or Asset Reconstruction company holds the complete rights of that particular NPA account assigned to them toward the recovery through enforcement & other legal means.
