Loan Recovery Process:
Loan recovered is a crucial index to measure the success of a lending organization. In case of both public and private sectors they initiate legal actions under the organizations’’ own ordinance against those defaulting and recalcitrant borrowers who fail to come up with any satisfactory proposal for settlement dues after all normal recovery efforts have been exhausted. Customers expect easy loan recovery process. Before going to legal action the institutions may adopt the following strategies to make the recovery process more flexible and actionable
• Close monitoring during validity/repayment period of loan.
• Gear up persuasion right from initial stage of its default/non-payment of installments.
• Understanding reasons of non-payment to obviate the problem.
• Constant follow-up with defaulting borrowers.
In last ten years the total loans recovered by both public and private sectors are 235,279 million BDT and 1855,530 million BDT respectively.
