Collection Policy

Collection Policy

Policy Objective

The objective of this policy is to ensure that collection of loan installment and recovery of overdue is strictly as per company’s guidelines and is in compliance with RBI guidelines. This policy also ensures that similar practices are deployed across all its branches to have smooth and timely recovery of dues and common practices to be followed in case of disputes.

Process

Light strictly adheres to the repayment guidelines of RBI in dealing with clients during collection of dues.

Light ensures that all loan recoveries are made by its employees and no third party will engage in the process.

Light employees deputed for collection and recovery makes themselves visible by displaying identity card issued by Light at appropriate place during collection.

Light collects all loan installments in the center meeting except when client is absent in two consecutive center meetings, recovery is done at house or workplace of client.

Light gives acknowledgement of all money collected from its clients.

All communications related to collection of dues are made in vernacular language and copies of all documents are kept for record.

Light staff usually makes collection from clients between 0700 hrs to 1900 hrs. In some special circumstances might contact clients beyond this time frame and with due consent from the client.

Light ensures that client’s request for not contacting at particular time of a day is honored unless client is misguiding the staff with mala-fide intentions.

Light employees are adhered to follow code of conduct and show professional behavior during collection of dues.

Light ensures that no employee will do harassment of any kind of its clients during collection. Thorough enquiry is done on receipt of such complaints and immediate action is taken if proved.

Light makes all efforts to resolve any disputes and differences related to repayment up to the satisfaction of clients.

Light initiates any legal action against client only after giving prior notice to client with sufficient time to resolve the issue.

Light encourages clients to pay installments on time and make them aware of benefits of timely payment and consequences of late payment and overdue.

Light strictly follows all procedures in collection of overdue.

Settlement of loan, if any is considered only after evaluating all the criteria related to it and with prior consent of the management.

Write-off of any loan is as per the company’s write-off policy.

Prepayment if any is only made at branch only after due approval from head office.