Recovery Policy

Policy on Collection of Dues and Possession/Repossession of Security. Any expression not defined herein shall have the same meaning as assigned to it in the Loan Agreement.

Introduction

The debt collection policy of Shubham is built around dignity and respect to Borrowers. Shubham will not follow policies that are unduly coercive in collection of Dues. The policy is built on courtesy, fair treatment and persuasion. Shubham believes in following fair practices with regard to collection of dues and repossession of security and thereby fostering borrower confidence and long-term relationship.

The repayment schedule for any loan sanctioned by Shubham will be fixed taking into account paying capacity and cash flow pattern of the Borrower. Shubham will explain to the Borrower upfront the method of calculation of interest and how the Equated Monthly Installments (EMI) or payments through any other mode of repayment will be appropriated against interest and principal due from the Borrowers. Shubham would expect the Borrowers to adhere to the repayment schedule agreed to and approach Shubham for assistance and guidance in case of genuine difficulty in meeting repayment obligations.

Shubham's Security Repossession Policy aims at recovery of dues in the event of default and is not aimed at whimsical deprivation of the property. The policy recognizes fairness and transparency in repossession, valuation and realization of security. All the practices adopted by Shubham for follow up and recovery of dues and repossession of security will be inconsonance with the law.

General Guidelines

All the members of the staff or any person authorized to represent Shubham in collection or/and security repossession would follow the guidelines set out below:

  1. The Borrower would be contacted ordinarily at the place of his/her choice and in the absence of any specified place, at the place of his/her residence and if unavailable at his/her residence, at the place of business/occupation;
  2. Identity and authority of persons authorized to represent Shubham for follow up and recovery of dues would be made known to the borrowers at the first instance. Shubham staff or any person authorized to represent Shubham in collection of dues or/and security repossession will identify himself / herself and display the authority letter issued by Shubham upon request;
  3. Shubham would respect privacy of its Borrowers;
  4. Shubham is committed to ensure that all written and verbal communication with its Borrowers will be in simple business language and Shubham will adopt civil manners for interaction with borrowers;
  5. Normally Shubham's representatives will contact the borrower between 0700 hrs and 1900 hrs, unless the special circumstance of his/her business or occupation requires Shubham to contact at a different time;
  6. Borrower's requests to avoid calls at a particular time or at a particular place would be honored as far as possible;
  7. Shubham will document the efforts made for the recovery of dues and the copies of communication set to Borrowers, if any, will be kept on record;
  8. All assistance will be given to resolve disputes or differences regarding dues in a mutually acceptable and in an orderly manner;
  9. Inappropriate occasions such as bereavement in the family or such other calamitous occasions will be avoided for making calls/visits to collect dues.

Giving notice to Borrowers

While written communications, telephonic reminders or visits by Shubham's representatives to the Borrowers place or residence will be used as loan follow up measures, Shubham will not initiate any legal or other recovery measures including repossession of the Property/Security without giving due notice in writing. Shubham will follow all such procedures as required under law for recovery/repossession of Property/Security.

Recovery/Possession/Repossession of Property/Security

Repossession of Property/Security is aimed at recovery of dues and not to deprive the Borrower of the Property/Security. The recovery process through repossession of Property/Security will involve repossession, valuation of security and realization of Property/Security through appropriate means. All these would be carried out in a fair and transparent manner. Repossession will be done only after issuing the notice as detailed above. Due process of law will be followed while taking repossession of the Property/Security. Shubham will take all reasonable care for ensuring the safety and security of the property after taking custody, in the ordinary course of the business.

Valuation and Sale of Property

Valuation and sale of Property/Security repossessed by Shubham will be carried out as per law and in a fair and transparent manner. Shubham will have right to recover from the Borrower the balance due if any, after sale of Property/Security. Excess amount if any, obtained on sale of property will be returned to the Borrower after meeting all the related expenses provided Shubham is not having any other claims against the Borrower.

Opportunity for the borrower to take back the security

As indicated earlier in the policy document, Shubham will resort to repossession of security only for the purpose of realization of its dues as the last resort and not with intention of depriving the Borrower of the Property/Security. Accordingly Shubham will be willing to consider handing over possession of Property/Security to the Borrower any time after repossession and before concluding sale transaction of the Property/Security, provided Shubham dues are cleared in full. If satisfied with the genuineness of Borrower's inability to pay the loan installments as per the schedule which resulted in the repossession of Property/Security, Shubham may consider handing over the Property/Security after receiving the installments in arrears. However, this would be subject to Shubham being convinced of the arrangements made by the Borrower to ensure timely repayment of remaining installments in future.