HOW TO RECOVER LOAN The recovery of the amounts due is a critical process and may vary customer to customer. The legal action may be taken at the last stage when all the conciliation efforts fail. Moreover, following are the steps which must be followed for recovery of the amounts due for effective recovery- 1) Conciliation- Conciliation is a very important part of the recovery and shall continue throughout the process of recovery. The conciliation effort may bear fruit even at the first visit to the customer or even after filing of legal cases against the customer. 2) First Come First Go- You need to maintain consistent contact with the customer and always remain available whenever customer calls you for collection of amounts due. The human tendency is that if creditor is in continuous contact for the collection of amounts due and maintaining relations with the customer, the said creditor shall always get first preference in the list of creditors of the customer for the refund of the amount due. One may come to know availability of the funds with the customer only when he/she is in continuous touch with the customer. So if you are reaching to the customer for the recovery when he has money well before any other financer/creditor you will be able to recover your amounts due from such customer without much pain. 3) Reminding the penalties, loan amount and terms of the Loan/debt to the customer- Always remind your customer about the terms of loan/business agreement and the charges which he/she/it will have to pay if he/she/it fails to pay/does not pay the loan amounts/debts due. The customer understands his business well and he can anticipate the effect of the penal interest, charges and penalties on his balance sheet and may pay the amounts immediately on availability of funds with him/her. 4) Compliance with Regulatory Requirement- Always follow the mandate given by regulatory bodies for the recovery of amounts due and ensure documentation as may be suggested. The said documentation will help you in recovery of amounts due during litigation. 5) Disclose all the options for repayment- First decide the options internally that may be given to the customer for repayment of the money and explain all the options to the said customer so that he may apprise the said options during the recovery process and take decision immediately. 6) Mediation from sales team- Sales teams of the organization always remain in touch with the customer and hence their mediation may help to some extent to make the customer understand the requirement of immediate repayment. 7) Legal Recourse- Explain the customer about the litigation that may be initiated as per the regulatory requirement/company requirement against the customer if it fails to pay the loan amounts/debt due and implication of such legal actions. The legal action may be initiated during the process of recovery and conciliation depending on regulatory requirement or depending on circumstances/requirement of the case or depending on the customer responses for the effective recovery of the amounts due.