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Loan Recovery Policy Of SIDBI
Preamble
The Loan Recovery Policy (LRP) is a non-statutory policy document issued by SIDBI on a voluntary basis.
Applicability
The LRP applies to all the SIDBI assisted accounts.
Objective
The basic objective of the LRP is to maximise recovery of dues under the credit portfolio of the Bank, especially out of Non Performing Assets (NPAs). The other allied objectives include bringing about uniformity in approach while dealing with defaulting borrowers and to ensure that all the NPAs are attended to and an appropriate recovery tool is applied expeditiously.
Guiding Principles of LRP
Dignity and respect of the customers is of paramount importance to SIDBI. SIDBI believes in following customer satisfaction and enduring customer relationship. SIDBI realises that quick and efficient credit delivery is the first step towards ensuring good recovery and endeavours to minimise undue delays in documentation and disbursements as far as possible. Greater focus is laid on preventing an account from becoming NPA rather than applying remedial measures at the post-NPA stage. The basic approach for recovery is practical and non-confrontationist. Fair treatment and persuasion are corner stones of recovery mechanism. Legal action is considered only as the last resort. While specific recovery action in each case would depend upon the characteristics of the case and attendant circumstances, general consistency in approach is expected to be maintained while dealing with the defaulting borrowers. More considerate treatment would be meted out to the borrowers who continue to make payments even after being classified as NPA.
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