Log in Sign up

SARFAESI

Securitisation and reconstruction of financial assets and enforcement of security interest.

Articles

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.

15 Aug 2026 · 2 min read

Frequently Asked Questions

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.

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.