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What is a Sarfaesi Notice?

What is a Sarfaesi Notice?

A Sarfaesi Notice, short for Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act Notice, is a legal document issued by a secured creditor (usually a bank or financial institution) to a borrower who has defaulted on a secured loan.

Here’s a breakdown of what a Sarfaesi Notice entails:


  • To inform the borrower about the default and provide an opportunity to rectify it.
  • To warn the borrower about the potential consequences of continued non-payment, including seizure of the secured asset.
  • To initiate the formal process of recovering the outstanding dues under the SARFAESI Act.

Key points:

  • Details of the loan: This includes the loan amount, outstanding balance, interest rate, and due date of payments.
  • Nature of the default: Specifies the number of missed installments or the total amount overdue.
  • Demand for payment: The notice requires the borrower to pay the outstanding amount within a specified time frame, typically 60 days from the date of the notice.
  • Consequences of non-payment: Informs the borrower about the potential actions the creditor can take, such as possession of the secured asset, sale of the asset through auction, or legal proceedings.
  • Contact information: The notice provides details on how the borrower can contact the creditor to discuss the situation and explore possible solutions.

Important things to remember:

  • Receiving a Sarfaesi Notice is a serious matter and requires immediate attention. It is crucial to act quickly to avoid further consequences.
  • Consult a lawyer or financial advisor to understand your options and rights as the borrower.
  • You may be able to negotiate a repayment plan with the creditor to avoid the seizure or sale of the secured asset.
  • There are legal avenues to challenge the notice if you believe it has been issued incorrectly.

Here are some additional resources that you may find helpful:

  • The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002:
  • Information on the SARFAESI Act from the Reserve Bank of India:
  • Legal Aid Services for Debt Recovery Issues:

Remember, seeking professional guidance is crucial when dealing with a Sarfaesi Notice. Don’t hesitate to seek help from qualified legal drt professionals or a DRT lawyer in Indore, to protect your rights and explore the best course of action in your situation.

I hope this information is helpful. Please let me know if you have any further questions.

Adcocate J.S. Rohilla (Civil & Criminal Lawyer in Indore)

Contact: 88271 22304

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