Section 31(j) of the SARFAESI Act excludes a case from its applicability when the amount due is below a certain threshold of the principal amount and interest thereon. What is that threshold percentage?

Section 31(j) of the SARFAESI Act provides that the provisions of the Act shall not apply to 'any case in which the amount due is less than twenty per cent of the principal amount and interest thereon.' This means if the outstanding dues (including interest) are less than 20% of the total principal and interest, the bank cannot invoke SARFAESI for enforcement of that particular security. This provision ensures that the Act's coercive enforcement machinery is not used for relatively minor defaults that are insignificant in proportion to the original loan. This is a key exclusion provision frequently tested alongside the agricultural land exclusion under Section 31(i).