MT Educare Limited Defaults on Loan Repayments
MT Educare Limited disclosed on March 31st, 2026, that it has defaulted on repayments of principal and interest on loans from banks and financial institutions. The company is currently undergoing a Corporate Insolvency Resolution Process (CIRP) initiated on December 16th, 2022, as per an order from the National Company Law Tribunal (NCLT).The total amount of outstanding borrowings currently defaults to 32.33 crore. This includes defaults related to Term Loans, Overdraft, and Corporate Guarantees from *Prudence ARC and Axis Bank.
A detailed breakdown of the defaults is presented below:
Defaulted Loan Details
| Lender | Principal (INR Crores) | Interest (INR Crores) |
|---|---|---|
| *Prudence ARC | 16.44 | 3.75 |
| Axis Bank Limited | 7.65 | 4.51 |
Details of Obligations
| Name of Lender | Amount Outstanding (INR Crores) | Tenure (Years) | Rate of Interest | Secured/Unsecured |
|---|---|---|---|---|
| Axis Bank Ltd - Term Loan | 7.16 | 2 | 11.65% | Secured |
| Axis Bank Ltd - OD | 4.98 | 2 | 11.20% | Secured |
| *Prudence ARC | 20.19 | 2 | 13.75% | Secured |
Additionally, corporate guarantees totaling 7.30 crore have been invoked by Axis Bank Ltd. on behalf of Sri Gayatri Education Society, and 16.69 crore by *Prudence ARC on behalf of Lakshya Forum for Competitions Private Limited.
The company’s total financial indebtedness, including short-term and long-term debt, is currently being assessed as part of the ongoing CIRP.
The default amounts are in accordance with claims received from secured financial creditors.
Note: Previously, loans were held by Assets Care & Reconstruction Enterprises Limited and later re-assigned to Prudent ARC Limited. Shamrao Vithal Co-op Bank Ltd (SVC) had initially filed a claim but it was subsequently rejected and the appeal against that order with the NCLAT is still pending.
MT Educare Limited is being managed under the CIRP by Resolution Professional Arihant Nenawati.
Source:
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