What is the minimum amount on which SARFAESI Act is applicable? On one website it is written 1 lakh

What is the minimum amount on which SARFAESI Act is applicable? On one website it is written 1 lakh and onthe other it is 10 lacs..

 

lol.. dono k ans. different hai... Jahan se chale vahin agye..

 

*ARCs explained after a few paragraphs.SARFAESI applies only to loans above Rs.10 lakhs.- another website

 

i think we hav to followcommercial banks websites like these questions

 

So, one lakh it is! Outstanding amount shud be one lakh and more then it is applicable

 

SARFAESI ACT is not applicable to loans below Rs.1 Lakh, unsecured loans (credit given without any collateral), or when the debt is below 20% of the total loan. Here the bank has the rights to auction the property of the defaulter.Debt Recovery Tribunal - Applicable to loans above Rs.10 Lakh. Upto Rs.10 Lakh the fees payable is Rs.12,000/- and above that Rs.12,000/- plus Rs.1000/- for every additional 1 Lakh rupees.

 

Ok..I read on a website that previously DRT had come into existence in 1993 but bcoz there happened to be so many bad debts that later Sarfaesi act came into existence... And now people can appeal in DRT depending on the rules under Sarfaesi.

 

Sarfaesi Act upto 1 lakh ; aboveDRT - upto 10 lakh ; aboveLok Adalat- upto 20 lakhs