Question

In an attempt of bank officials to collect and recover some loans from defaulters. There are soo many procedures to follow. Explain any three (3) of the procedures.

Answer 1

3 procedures to collect and recover some loans from defaulters are following.

1.The first step in the process of money recovery will be to a send a legal notice to the defaulter. If you still don't receive the payment, you can go for one of these options; Summary Suits, Negotiable Instruments Act, Criminal case or Insolvency and Bankruptcy Code.

2. If any security is available with bank they can seize such property and utilise such proceeds.

3. Restructuring of loan is the option which is widely given by banks to defaulters.

4. Some banks recover money via recovery agents also and in many cases loans are factored and sold to factoring companies .

Pls like if logic explained