What is an NPA Account and Its Consequences?

Fundsourceindia19 Sep, 2023Finance

When a borrower fails to repay EMIs of a loan for a minimum of 3 months, then banks classify such accounts as NPA(Non-Performing Asset). In such conditions, the borrower will become a defaulter and banks try to recover the whole loan amount in a single go. But mostly at that time, the borrower was already facing a financial crunch. Also, becoming an NPA heavily impacts the credit score of a person and he/she is not able to get any money from another bank.