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shantanu   12 July 2017

Registration withdrawn

can a NBFC initially registered with National housing bank collect interest from the loan which become NPA in 2004 at contractual rate of 19 % per annum TILL 2017, after its registration was cancelled by NHB IN 2008.



Learning

 12 Replies

P. Venu (Advocate)     12 July 2017

The material facts are yet to be posted.

G.L.N. Prasad (Retired employee.)     12 July 2017

The Registration cancellation applies to further lending, and for what all was lent by NBFC, they have repay the same to NHB.  Neither Bank nor NBFC lends their own amount but first advances the amount, and gets refinance from NHB, which they have to repay to NHB, irrespective of whether the borrower repay the amount or not to the Bank/NBFC.  Read the conditions of such registration cancellation, it only states that it should not lend further or not eligible for refinance, as NHB eiher might have observed serious violations like  lending without following the norms, or failure in repayment of earlier loans by NBFC.

Why the borrower is concerned with NBFC registration cancellation by NHB, when he borrowed from NBFC and when it is still functioning, cancellation of registration is temporary or permanent is also to be seen.   ?

Borrower can write a letter to NHB and seek such information as repayment can be made now to NBFC as they are demanding now, even after cancellation of such approval from NHB.

Kumar Doab (FIN)     12 July 2017

Mr. G.L.N.Prasad has illustrated.

The borrower is under obligation to pay.

shantanu   13 July 2017

Thanks a lot.

shantanu   13 July 2017

Thanks a lot.

shantanu   13 July 2017

Thanks a lot.

shantanu   13 July 2017

Thanks a lot.

Rajendra K Goyal (Advocate)     13 July 2017

Agree, the borrower has to pay its loan even the registration of the NBFC cancelled.

Kumar Doab (FIN)     13 July 2017

You are welcome.

Kumar Doab (FIN)     13 July 2017

Ignore @PSD..........

Kumar Doab (FIN)     13 July 2017

Ignore Trademark sarcasm of @PSD...................atleast for once on my call.

Kumar Doab (FIN)     13 July 2017

Don't ignore grave and wrong advise of @PSD to which many members and experts have pointed e.g Mr. Shrenik;

https://www.lawyersclubindia.com/forum/-151491.asp

 

 


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