A major part of this Small Finance Bank was sold. If you have taken an old loan, now it will be recovered.

If you also finance from small banks then you need to pay attention to this news. Now for recovery, an agency other than the bank is going to reach you. Recently, Ujjivan Small Finance Bank has sold a large part of its old bad loans to another company which will now be entitled to recovery.

Recently, in a big step, Ujjivan Small Finance Bank has sold a large part of its NPA and Write-Off loans. The bank has sold these loans and assets worth more than Rs 270 crore to an asset reconstruction company. Full details of the transaction were made public in an exchange filing.

The bank received Rs 40.5 crore from this sale. The deal was done through the Swiss Challenge Method, which allows private companies to win government contracts through bidding.

There is a lot of pressure and instability in the microfinance sector these days. The main reasons for this are overleveraging of customers, inability to repay loans and many credit facilities extended to customers with fake ID cards. Because of this, the pressure on individuals and companies in the microfinance sector is continuously increasing.

What will be the impact on customers?

Those customers who have taken loan from Ujjivan Small Finance Bank and had not been able to repay the loan for a long time and if their account has been declared non-performing asset and write off loan by the bank, then it is possible that there may still be efforts to recover it from them. Other agencies can contact.