The Recovery Policy at GRUH has been designed on the lines of the model policy for collection of dues and repossession of security provided by the IBA. The policy has been formulated at the request of National Housing Bank (NHB) to have a fair and transparent process for collection of dues and repossession of security with a view to fostering confidence and long term relationship with customers.
The underlying objective of the recovery policy is to lay down fair processes for collection of dues aimed at avoiding whimsical deprivation of the property / security of the customers and in consonance with the prevailing laws of the land.
General terms of loan
- The repayment terms for the loan such as repayment frequency, interest calculation frequency, amortization frequency, repayment mode and method of calculation of interest, delayed payment charges etc are upfront clarified to customer in the sanction letter and / or loan agreement.
- The general terms of repayment and calculation of interest and charges are also displayed at the branches and on the company’s website.
- GRUH does not provide the repayment schedule for the entire tenure of the loans. However the key terms viz. ROI, loan tenure, interest calculation frequency, amortization frequency and equated monthly instalments are mentioned in the sanction letter.
- Change if any in the terms of payment due to rate revision / PLR revision, are being intimated to the customer in writing.
Guidelines for recovery of dues
- GRUH follows multiple modes for recovery including reminder letters, telecalling, personal visits, follow up with guarantors, employer and associates whose reference was taken besides legal action.
- GRUH generally contacts the customer at the place of his choice and in absence of any specified choice, at the place of his residence or place of work.
- GRUH generally does not deploy any outside agency for recovery activity and recoveries are being made by GRUH’s own staff who carry their Identity / visiting card. In case GRUH deploys an outside agency for recovery, then the personnel of the agency shall be provided an identity letter which can be shown to customer upon request.
- The customers privacy is always respected at all times by GRUH during recovery and hence the visits are generally being made during daytime at the place and time preferred by the customer.
- Customers request to avoid calls at a particular time or at a particular place are generally honored unless the intention of the customer is to avoid meeting GRUH staff.
- All written and verbal communication with customers are in simple business language and GRUH adopts civil manners for interaction with customers.
- All recovery visit details and the copies of communication sent to customers, if any would be documented for future reference.
- Inappropriate occasions such as bereavement in the family or such other calamitous occasions will be avoided for making calls /visits to collect dues.
- GRUH does not generally accept cash at its offices. Customers are informed of the collection centres and tie ups which GRUH has for collection of its payments through its offices. Customers are required to make arrangement for the payment without any reminder and as per the collection arrangements made by GRUH.
- Opportunity shall be provided to customers to regularize their account in case of default.
- Legal action, if any, shall be taken only in confirmation with the prevailing laws of the land and after giving reasonable opportunity to the customer to regularize his account.
- Attitude during tele-calling and recovery visit would be to maintain decency and reasonable decorum would be maintained at all times provided the same is being reciprocated by the customer.
Repossession of security to recover dues
- Repossession of security is aimed at recovery of dues and not to deprive the customer of the property. Due process of law will be followed while taking possession of the property.
- The guidelines stipulated under the SARFAESI Act, 2002 shall be followed at each step of the possession and notices and newspaper publications as required shall be published in widely read newspapers.
- Valuation of the property for the purpose of sale shall be taken from government approved valuers and due care shall generally be taken not to dispose the property at rates lower than the distress value.
- GRUH generally endeavours to take possession of the property with the orders of the District Magistrate. In case of non co operation and threatening attitude from customer, police protection and assistance of government machinery is requested for taking possession.
- GRUH shall endeavour to dispose of the property at the earliest following due processes stipulated under the SARFAESI Act, 2002.
- Excess money recovered from sale of properties after adjusting all dues payable to GRUH including legal costs and cost of upkeep of property and society / other statutory dues, shall be retained in trust with GRUH and reasonable efforts to refund the money to the customers shall be taken.
- In case of properties having household items / inventory at the time of possession, customers shall be informed to collect their inventory and reasonable time shall be provided. In case customers do not collect the inventory, GRUH shall endeavour to sell the property with the inventory after taking valuation of the inventory.
- Customers shall be given the option to make payment and clear their entire loan even after possession of the property till the time a valid bid is accepted by GRUH.
Engagement of Recovery Agents
- Generally GRUH does not have any external recovery agency. However, in the event of any exigencies GRUH may take the help of an external agency and at such time, due care shall be taken to ensure that the external agency follow the same policy and procedures as GRUH would.
- GRUH utilizes the services of advocates for the purpose of sending notices and court matters besides legal counsel.