Recovery And Collection Policy

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Preamble:

The Collections & Recovery policy of Creditech Solutions Private Limited (hereinafter referred to as the “Company” ) shall aim at making the recovery process faster to avoid any Non-Performing Assets ( “NPA” ). The policy is aimed at strengthening the management and recovery of NPAs and seeks to undertake proactive initiatives to monitor existing accounts closely

Recovery and Resolution Mechanism:

The guiding principles for this policy are as specified below:

  1. The recovery process/procedure will be based on legal and acceptable practices.
  2. The Company will follow only ethical practices and will not resort to unduly coercive tactics in the process of recovery of NPAs.
  3. The defaulters will be treated with respect and dignity while being focussed on recovery.
Tools of recovery:

The repayment record of borrowers shall be monitored both with regard to payment of interest and repayment of the principal. Whenever a borrower defaults or is likely to default, rigorous follow-up shall be made for the collection of dues or arrears. When default occurs, oral and written communications shall be sent to the borrower to regularize their accounts within a specified period.

Company shall on a case-by-case basis use any of the following broad methods for management of problem accounts:

  1. Restructuring, rephasement, and rehabilitation
  2. Settlements / compromise
  3. Write off
Following procedure is to be followed by the company:
1. Prior to default:
  • Automated SMS/emails to be regularly sent to the borrowers prior to the EMI due date (“Due Date”) to serve as a reminder of their obligation towards repayment.
  • Phone call from the Company to the borrower to be made 5 days before the Due Date as a reminder to pay the EMI.
2. Post default: The Company shall adopt the following procedure upon occurrence of default:
S. No.Stage of Default (Post EMI Stage)Recovery Action
130 days past Due Date
  • Borrowers who are in default past 30 days of the Due Date, their case shall move to the collection team (“Collection Team”) which shall carry out regular follow-ups and monitor the status of the outstanding payment.
  • If the borrower doesn’t cooperate over phone calls, then the Collection Team shall physically visit the borrower at the communication address to seek repayment of the outstanding loan.
230 to 60 days past Due Date
  • The Collection Team to visit the borrower’s location again to remind him/her of the obligation to make repayment.
  • Dunning letter will be issued to the defaulting borrower by the Company.
  • If within 60 days from the Due Date, the borrower does not respond, then a preliminary legal notice shall be sent to the borrower warning him/her on initiation of legal proceedings by the Company post 90 days from the Due Date.
390 days past Due Date
  • The Company shall provide regular updates on recovery to all lenders and also appoint a dedicated portfolio manager for the same.
Other clauses:

Prepayment of loan:The lender has no right ask the borrower to prepay the loan amount, however, the borrower has the right to prepay the loan subject to conditions laid down in the loan agreement executed with the lender.

Late fee:Late fee is applicable on the payments not made by the borrowers on the due date as per the repayment schedule and the loan agreement.

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Disclaimer : Reserve Bank of India does not accept any responsibility for the correctness of any of the statements or representations made or opinions expressed by Creditech Solutions India Pvt. Ltd, and does not provide any assurance for repayment of the loans lent on it. Creditech Solutions Pvt Ltd (alphamoney.in) is having a valid certificate of registration dated December 30th 2021 issued by the Reserve Bank of India under Section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or the opinions expressed by the company and for repayment of deposits / discharge of liabilities by the company.

The information contained herein is only to enable the Lender to make a considered decision. Any decision taken by the Lender on the basis of this information is the sole responsibility of the Lender and ALPHAMONEY is not liable. This information does not include any sensitive personal data or information of the Borrower. ALPHAMONEY only facilitates a virtual meeting place between the Borrowers and the Lenders on its online platform. The decision to lend is entirely at the discretion of the Lender and ALPHAMONEY does not guarantee that the Borrowers will receive any loans from the Lenders. ALPHAMONEY merely aids and assist the Lenders and the Borrowers listed on its website to make and receive loans and charges a service fee from the Lenders and the Borrowers for such assistance. ALPHAMONEY is only an ‘Intermediary’ under the provisions of the Information Technology Act, 1999.