Published Jun 19, 2026 4 Min Read

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In India, leading Asset Reconstruction Companies (ARCs) include Asset Reconstruction Company (India) Limited (ARCIL) and International Asset Reconstruction Company Pvt. Ltd. (IARC). In addition, major banks, such as Kotak Mahindra Bank, engage in asset-related resolution activities.
 

Bajaj Finance Limited maintains alliances with Kotak Mahindra Bank and ARCIL for the sale of distressed loan portfolios. Upon the completion of a sell-off (debt assignment), the loan is closed in Bajaj Finance’s books and transferred to Kotak or ARCIL. A new loan number is then assigned by the acquiring institution, where the account remains active for recovery or resolution.

What formalities are done before selling the loan

Before transferring a loan to an Asset Reconstruction Company (ARC), the lender typically sends the following communications:

  • Pre-sale intimation: The lender notifies the customer via SMS, email, or a formal pre-sale notice before the transfer occurs.
  • Post-sale intimation: Once the sale is finalised, the customer receives a post-sale notice (often called a Notice of Assignment) via SMS, email, or letter confirming the new debt owner.


Key details to check in these notices:

  1. New creditor name: The name of the ARC or bank (e.g., ARCIL or Kotak Mahindra Bank) acquiring the loan.
  2. Effective date: The date from which all future payments should be directed to the new entity.
  3. Outstanding balance: The total amount being transferred at the time of the sale.
  4. Contact information: New customer service details for repayment and resolution.

Understanding the assignment of loan process


When a lender transfers a debt, they legally assign the loan to an Asset Reconstruction Company (ARC) through a formal assignment agreement. This process shifts the legal ownership of the debt, changing who you owe for the remainder of the loan term.


The role of ARC as your new creditor


Once the assignment is finalised, the ARC steps into the shoes of the original lender. Here is what you can expect during this transition:
 

  • Official communication: You will receive a written notice informing you of the transfer and providing details of the new owner.
  • New creditor rights: The ARC becomes your official creditor and assumes full responsibility for the recovery of the outstanding loan.
  • Revised payment instructions: All future payment instructions, including updated account details, will be provided directly by the ARC.
  • Repayment follow-ups: The ARC or its authorised representatives will handle all subsequent payment follow-ups and debt resolution discussions.

Tip: Always verify the authenticity of the assignment by checking the Notice of Assignment against the details provided in your pre-sale intimation to ensure you are communicating with the correct entity.

What should you do if your loan is sold

If your loan is sold to an ARC or another bank, do not panic. This is a standard financial process called debt assignment.

Follow these essential steps to ensure a smooth transition and protect your credit health:


  • Verify the assignment: Review the official "Notice of Assignment" from your original lender to confirm the identity of the new creditor.
  • Validate the balance: Compare the outstanding amount mentioned in the transfer notice with your own records to ensure accuracy.
  • Update payment channels: Stop any active Auto-pay or NACH mandates linked to the original lender and set up new instructions for the acquiring institution.
  • Request new account details: Contact the new creditor to obtain your updated loan number and secure portal login details.
  • Maintain communication: If you are in financial distress, reach out to the new creditor immediately to discuss repayment plans or settlements.

Kotak Mahindra

Please connect with Kotak Mahindra Bank on below contact details for further information. 



KOTAK HELPLINE NO: 18001209820 (10 AM – 6 PM on weekdays)


Email address:  RARD.customercare@kotak.com



You can direct their communication on the below mentioned address: 



KOTAK MAHINDRA BANK LTD, Retail ARD Customer Care, Kotak Infiniti, 4th Floor, Building no 21, Infinity park, Off Western Express Highway, General AK Vaidya Marg, Malad East, Mumbai 40009



ARCIL

Asset Reconstruction Company (India) Limited

The Ruby, 10th Floor 29, Senapati Bapat Marg, Dadar (West), Mumbai – 400 028

Tel: 022-66581310

Email: complaint@arcil.co.in


IARC

Registered Office address - 406, DLF South Court, Saket, New Delhi- 110017

Customer care Number - 011- 41199400 

E-mail Address: customersupport@iarc.co.in


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Frequently asked questions

Why has my loan been sold to another financial lender?

When a borrower is unable to repay the loan and the account is classified as a Non-Performing Asset (NPA), banks and financial institutions may transfer or assign such loans to an Asset Reconstruction Company (ARC) for recovery and resolution purposes.

Are borrowers informed before a loan is sold?

Yes, lenders generally inform borrowers both prior to and after the transfer of the loan to an Asset Reconstruction Company. This communication may be made through SMS, email, or formal pre- and post-sale notices.

What should I do once I learn that my loan has been sold to an Asset Reconstruction Company?

You should first review the communication received from your lender to identify the Asset Reconstruction Company to which your loan has been transferred. Thereafter, you should contact the respective company directly to obtain further details and discuss the next steps.

Why is an Asset Reconstruction Company following up with me for recovery and how is my loan reported now?

Once a loan is transferred to an Asset Reconstruction Company (ARC), the responsibility for recovery shifts to the ARC. Accordingly, the ARC will handle all recovery-related communications and follow-ups. In addition, the ARC will report post sale status of your loan account to credit bureaus from their end. As well as the first lender will report the loan account status as ‘Account Sold’.

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