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Loans & Credit

Loans, working capital, recovery, and credit facilities for individuals and businesses.

Credit Agriculture MSME Recovery SARFAESI IBC DRT

Articles

MSME MSME Credit in India: Udyam Registration, CGTMSE, and Mudra Loans Explained

Small businesses have several dedicated routes to formal credit. Here is how Udyam registration, collateral-free CGTMSE-backed loans, and Mudra loans fit together.

14 Jul 2026 · 2 min read SARFAESI SARFAESI Act: How Banks Enforce Security Without Going to Court First

The SARFAESI Act lets secured lenders act against defaulting borrowers' collateral without first obtaining a court decree. Here is the process, step by step.

01 Jul 2026 · 2 min read Credit Working Capital Finance: Cash Credit vs Overdraft vs Term Loan

Businesses fund day-to-day operations differently from long-term assets. This guide compares the common working capital facilities banks offer and when each one fits.

28 Jun 2026 · 2 min read Recovery What Happens When a Loan Becomes an NPA

A loan does not become unrecoverable overnight. Here is how classification into a Non-Performing Asset works and what recovery options banks and borrowers typically consider.

26 Jun 2026 · 2 min read Agriculture Kisan Credit Card (KCC): How Farmers Access Working Capital

The Kisan Credit Card gives farmers a simple, revolving credit line for cultivation and allied needs. Here is how it works and why it counts toward priority sector lending.

23 Jun 2026 · 2 min read IBC Insolvency and Bankruptcy Code: What Happens When a Corporate Borrower Goes to NCLT

The IBC created a time-bound process for resolving corporate insolvency. Here is what the Corporate Insolvency Resolution Process actually involves.

23 Jun 2026 · 2 min read DRT Debt Recovery Tribunals: A Faster Forum for Bank Loan Recovery Suits

DRTs were set up specifically to speed up recovery suits filed by banks, outside the general civil court system. Here is how the process works and where to appeal.

18 Jun 2026 · 2 min read

Frequently Asked Questions

Not necessarily — pricing depends on the bank, collateral, and borrower risk profile. The key difference is structure: CC is revolving and tied to short-term assets, while a term loan is a fixed, amortising facility.
No. While crop cultivation is the primary use, KCC limits can also cover post-harvest expenses, working capital for allied activities like animal husbandry and fisheries, and in some cases investment credit, depending on the bank's scheme structure.
It isn't mandatory to operate a business, but it is generally required to formally access MSME-specific schemes, subsidies, and priority-sector credit benefits, so most eligible businesses register.
No. NPA classification is an accounting and provisioning treatment reflecting overdue status; a write-off is a separate, later decision the bank may take for accounting purposes, and it does not extinguish the borrower's legal repayment obligation.
It applies to secured loans above a specified threshold extended by banks and notified financial institutions; it generally does not apply to unsecured loans or, with some exceptions, to agricultural land used as security.
The Committee of Creditors (CoC), made up primarily of financial creditors, votes on resolution plans; an approved plan then needs to be sanctioned by the NCLT to take legal effect.
Yes — DRTs generally handle recovery matters above a statutory pecuniary threshold set under the Recovery of Debts and Bankruptcy Act; smaller disputes are typically pursued through regular civil courts.
Debt Service Coverage Ratio measures a borrower's cash flow available to cover debt obligations. Banks use it to judge whether a business can comfortably service the loan being sanctioned.
Many KCC schemes bundle personal accident insurance for the farmer and crop insurance linkage under schemes like Pradhan Mantri Fasal Bima Yojana — confirm the specific inclusions with your bank.
No. CGTMSE only removes the collateral requirement by providing the bank a guarantee cover — the borrower still repays the loan with interest as per the sanctioned terms.
Yes — an OTS is typically reported to credit bureaus as a settled (rather than fully closed) account, which can negatively affect the credit score and future loan eligibility.
A borrower can approach the DRT to challenge the process, or can repay the outstanding dues (or reach a settlement with the bank) before the sale is finalised to halt further action.
No — IBC applies to companies, limited liability partnerships, and, under separate provisions, individuals and partnership firms, though most publicised cases involve larger corporate defaults given the amounts involved.
The DRT hears the original recovery application or SARFAESI challenge, while the DRAT is the appellate forum that hears appeals against DRT orders.