NPA (Non-Performing Asset): An asset, typically a loan or debt instrument, that is not producing income for the lender or creditor. It is generally considered a bad loan and is considered a risk to the lender.
DRT (Debt Recovery Tribunal): A legal forum in India established to resolve disputes related to recovery of debts and enforce the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act.
Foreclosed: A property that has been taken back by a lender after the borrower has failed to make the required payments on a mortgage loan.
SARFAESI (Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest) Act: An Indian law that provides a framework for the securitization and reconstruction of financial assets and enforcement of security interest. The act gives banks and other financial institutions the power to auction properties of defaulting borrowers to recover their dues.
Distressed asset: An asset, such as a loan or property, that is in financial trouble and is not generating income for the lender or owner. These assets are often sold at a discount to investors who are willing to take on the risk of turning them around.