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1. INTRODUCTION:
The Winners Royal Varsha Credit Cooperative Society Limited ("Society") believes in responsible lending practices and is committed to ensuring timely recovery of loans to maintain the financial health of the Society. This policy outlines the Society's approach to recovery of loans and the Code of Conduct that agents and employees must adhere to during the recovery process.
2. RECOVERY PROCESS:
2.1. Early Warning System:
The Society will implement an Early Warning System (EWS) to identify loan accounts that are overdue or at risk of becoming non-performing. The EWS will enable the Society to take proactive measures to recover loans and mitigate potential losses.
2.2. Communication with Borrowers:
The Society will communicate with borrowers in a respectful and courteous manner, ensuring that all communications are clear and easy to understand. The Society will provide borrowers with the necessary information to make informed decisions regarding their loan accounts and will encourage borrowers to approach the Society for assistance in case of financial difficulties.
2.3. Recovery Procedure:
The Society will follow a recovery procedure that includes the following steps:
(i) Reminder notices: The Society will send reminder notices to borrowers whose loan accounts are overdue, requesting them to make the necessary payments to avoid penalties.
(ii) Follow-up calls: If borrowers fail to respond to reminder notices, the Society's recovery team will follow up with phone calls to remind them of their overdue payments and encourage them to make the necessary payments.
(iii)Recovery visits: In case of non-payment, the Society's recovery agents will visit the borrower's residence or business premises to collect payments and resolve any issues that may be preventing the borrower from making payments.
(iv)Legal action: If all other efforts fail, the Society may initiate legal action against the borrower to recover the outstanding amount.
2.4. Auction of Collateral:
In case of default by borrowers, the Society may proceed with the auction of collateral (in case of secured loans) after giving due notice to the borrower. The Society will follow all relevant laws and regulations in conducting the auction process.
3. CODE OF CONDUCT FOR RECOVERY:
3.1.Professionalism Agents and employees must conduct themselves in a professional manner at all times, treating borrowers with respect and courtesy. Agents and employees must refrain from using abusive language or threatening behavior during recovery visits.
3.2.Confidentiality Agents and employees must maintain the confidentiality of borrower information and must not disclose any borrower information to unauthorized persons.
3.3.Compliance Agents and employees must comply with all applicable laws and regulations related to recovery of loans. Agents and employees must also comply with the Society's policies and procedures related to recovery of loans.
3.4.Restriction on Social Media and Other Activities Agents and employees must not engage in any activity that may compromise their ability to perform their duties effectively, including but not limited to social media activity that may damage the reputation of the Society or its borrowers.
3.5.Prohibition of Unethical Practices Agents and employees must not engage in any unethical practices during the recovery process, including but not limited to accepting bribes or other forms of gratification to influence recovery decisions.
4. GRIEVANCE REDRESSAL MECHANISM:
4.1.The Society will establish a grievance redressal mechanism to address any complaints or grievances from borrowers regarding the recovery process.
4.2.The mechanism will ensure that all complaints are handled in a timely and efficient manner, and that borrowers are provided with appropriate redressal for their grievances.
5. CONCLUSION:
5.1.The Society is committed to responsible recovery practices and to conducting recovery operations in a transparent and ethical manner.
5.2.The Society's recovery policy and code of conduct provide guidelines for agents and employees to ensure that recovery operations are conducted in a fair and respectful manner while upholding the interests of the Society and its members.
