Under Section 13(2) of the SARFAESI Act, 2002, what notice must a secured creditor serve on the borrower before taking action for possession?

Solution

Section 13(2) of the SARFAESI Act, 2002, requires the secured creditor to serve a 60-day written notice on the borrower specifying the loan amount, nature of default, date from which default occurred, and requirement to pay outstanding dues and costs. The notice must be served through registered post with acknowledgment or personal delivery. The borrower gets 60 days to cure default by making full payment. Only after expiry of 60 days and non-payment can the secured creditor proceed with recovery under Sections 13(4) (sale of property) or 14 (seeking magistrate's possession order). This notice requirement protects borrower interests and provides opportunity to remedy default.