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Computer Goes Green

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Submitted By ebin
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STATE BANK OF TRAVANCORE
(Associate of the State Bank of India)

Head Office : Thiruvananthapuram

ASSET RECOVERY MANAGEMENT DEPARTMENT

LOAN RECOVERY POLICY

Policy on Collection of dues from defaulting borrowers

and security repossession for realisation of dues

1. Introduction:
1.1 The debt collection policy (recovery policy) of the bank is built around dignity and respect to customers. The Bank will not follow policies that are unduly coercive in recovery of dues from borrowers. The policy is built on courtesy, fair treatment and persuasion. The bank believes in following fair practices with regard to recovery of dues from borrowers and taking possession of security (properties / assets charged to the bank as primary or collateral security) (known as security repossession) and thereby fostering customer confidence and long-term relationship.

1.2 The repayment schedule for any loan sanctioned by the Bank will be fixed taking into account the repaying capacity and cash flow pattern of the borrower. The bank will explain to the customer 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 customers. The bank would expect the customers to adhere to the repayment schedule agreed to and approach the Bank for assistance and guidance in case of genuine difficulty in meeting repayment obligations.

1.3 The Bank’s Security Repossession Policy (taking possession of the mortgaged properties under SRESI Act or acquiring the property as non banking asset through enforcement of decree) 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

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