MT Educare Limited Defaults on Loan Repayments, Corporate Insolvency Proceedings Continue

MT Educare Limited Defaults on Loan Repayments, Corporate Insolvency Proceedings Continue​

MT Educare Limited has defaulted on the repayment of principal and interest amounts from various financial institutions. The company is currently undergoing a Corporate Insolvency Resolution Process (CIRP), as per a National Company Law Tribunal (NCLT) order dated December 16, 2022.

The default relates to obligations including Term Loans, Overdrafts, and Corporate Guarantees with multiple lenders. As of June 29, 2026, the company reported a total outstanding borrowing amount from banks amounting to 32.33 Crores INR.

Loan Default Breakdown​

Details regarding the defaulted loans involving Axis Bank Limited and Prudence ARC are as follows:


The company’s total outstanding borrowings from banks and financial institutions sum up to 32.33 Crores INR.

Obligation Details​

Specific details concerning the obligations held by Axis Bank Ltd include two secured loans: a Term Loan of 7.16 INR crore (2 years tenure, 11.65% interest rate) and an Overdraft (4.98 INR crore, 2 years tenure, 11.20% interest rate).

For Prudence ARC, the outstanding obligation is 20.19 INR crore over a 2-year tenure at a 13.75% rate of interest.

Invoked Corporate Guarantees​

The company also has invoked corporate guarantees against its primary borrowers with two major lenders:

Context of CIRP and Creditor Claims​

The company is under Corporate Insolvency Resolution Process (CIRP) since December 16, 2022. The default amount relates to claims received from Secured Financial Creditors.

In addition to the aforementioned borrowings, a claim was filed by Shamrao Vithal Co-op Bank Ltd (SVC) for 49.72 crore INR relating to a corporate guarantee issued by the company for its subsidiary Labh Ventures India Pvt Ltd. However, SVC Bank Limited had not invoked this guarantee before the Insolvency Commencement Date on December 16, 2022, leading to the rejection of their claim. The bank subsequently filed an interim application (IA) which was dismissed by the Bench dated March 27, 2025, though the bank has appealed that order with the NCLAT, and the decision remains pending.

It is also noted that previously held loans were reassigned to Prudent ARC Limited via a deed of Assignment on August 11, 2023.

MTEDUCARE Stock Price Movement​

Today, MT Educare Limited shares edged higher to close at ₹2.41 after gaining 4.78%, marking a strong performance in the post-market session. The stock recorded brisk activity throughout the day, with 56,131 shares traded.