MT Educare Defaults on Repayment of Principal and Interest from Banks
MT Educare Limited has disclosed defaults concerning the repayment of principal and interest amounts across various loans held by financial institutions, including Prudence ARC and Axis Bank Limited.The company’s debt obligations were detailed as of July 29, 2026. The total outstanding borrowings from banks and financial institutions amounted to 32.33 Crores.
A breakdown of the current default amount (in INR crore) for different lenders is provided below:
| Lender | Principal Default Amount | Interest Default Amount |
|---|---|---|
| Prudence ARC | 16.44 | 3.75 |
| Axis Bank Limited | 7.65 | 4.51 |
The default date for these obligations was noted as June 30, 2026, with arrears dating back to March, 2021. The nature of the obligation across all lenders included Term Loans, Overdrafts, and Corporate Guarantees.
Details of Financial Obligations
MT Educare Limited holds several distinct loans from Axis Bank Ltd and Prudence ARC. These obligations include secured borrowings ranging from 4.98 Crores to 20.19 Crores, with tenure periods specified up to two years for both the Term Loan and Overdraft accounts.Specific loan details are outlined as follows:
| Lender | Obligation Type | Amount Outstanding (INR in Crores) | Tenure (in Years) | Rate of Interest | Security Status |
|---|---|---|---|---|---|
| Axis Bank Ltd - Term Loan | Term Loan | 7.16 | 2 | 11.65% | Secured |
| Axis Bank Ltd - OD | Overdraft | 4.98 | 2 | 11.20% | Secured |
| Prudence ARC | Term Loan | 20.19 | 2 | 13.75% | Secured |
In addition to these borrowings, the company also has invoked Corporate Guarantees against its operations by two lenders:
| Name of Lender | Primary Borrower | Amount (INR in Crores) | Security Status |
|---|---|---|---|
| Axis Bank Ltd | Sri Gayatri Education Society | 7.3 | Secured |
| Prudence ARC | Lakshya Forum for Competitions Private Limited | 16.69 | Secured |
Company Debt and CIRP Status
The company has been operating under the Corporate Insolvency Resolution Process (CIRP) since December 16, 2022, following an order from the National Company Law Tribunal (NCLT).MT Educare Limited's total financial indebtedness, including both short-term and long-term debt, is reported to be 32.33 Crores.
MTEDUCARE Stock Price Movement
MT Educare Limited shares today slipped by 1.04% to settle at ₹1.90, falling from yesterday's close of ₹1.92. The stock saw a total traded volume of 61,945 shares during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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