We are a SME engaged in manufacture of a food product. We have taken a term loan and working capital from a nationalized bank.
Due to lack of orders and revenue, we are not able to pay the EMI that's due in Jan 2021. We have paid EMIs till last month. The bank is threatening that our account will be declared NPA if not paid before 31st Jan.
We may not be able to pay the EMI as we have exhausted all options.
If the bank declares NPA what would happen to our investments and properties given as collateral for the loan?
CAclubindia
