What happens if credit card and home loan become NPAs?

Advocate Ayantika Mondal Answered: 18 Jun 2026

Dear Client, If your credit card or home loan remains unpaid for a long period, the lender may classify the account as an NPA (Non-Performing Asset). This can seriously affect your CIBIL score and make it difficult to get loans in the future. The bank may send notices, start recovery proceedings, and take legal action to recover the dues. In the case of a home loan, since the property is given as security, the lender may also take steps to recover the outstanding amount by enforcing its rights over the mortgaged property. If you are facing financial problems, it is advisable to speak to the lender as early as possible and explore options such as restructuring or settlement. Thank you.

Advocate By LEAD INDIA Answered: 17 Jun 2026

If both your credit card and home loan accounts with the same bank have become NPAs, do not ignore the bank's notices. The bank can initiate recovery proceedings for the outstanding dues. In the case of a home loan, the bank may take action against the mortgaged property after following the prescribed legal procedure. For credit card dues, separate recovery proceedings may be initiated. You may request loan restructuring, negotiate a settlement, or seek revised repayment terms based on your financial condition. Before accepting any settlement, obtain the terms in writing and preserve all communications and payment records. For further legal assistance contact us on our helpline number.