Overdue EMI Collection Process:
This action plans differ for client status and overdue status.
1.1 Overdue EMI-One to Four months:
Steps taken for overdue EMI one to four months are given below:
At first, the assigned team members will communicate with the overdue clients and try to take the
commitment from the overdue clients about repayment. Committed days should not exceed more
than seven days.
If there is no positive response from the overdue clients within seven days, then the assigned team
members contact with the co-applicant and personal guarantor and inform them about overdue EMI.
After that, if there is no positive response from the overdue clients, then have to send them reminder
letter and request them to come in the office for the overdue EMI payment solution.
1.2 Overdue EMI Five to Eight months:
Steps taken for overdue EMI five to eight months are given below:
At first, the assigned team members try to reach the overdue clients through phone calls and emails.
If the clients are not responding then have to visit to the client‟s home, project and office.
Try to get written commitments from the clients about the overdue payment specially eight overdue
EMI clients.
After defaulting of fifth installment the assigned team members send reminder letter to the clients.
After doing above steps, if there is no positive response from the overdue clients, must have to send
them legal notice.
Try to bring the defaulter clients to the office to discuss about overdue payment.
If it is necessary then arrange meetings with the higher management of the organization about the
defaulter clients.
1.3 Overdue EMI Nine to Seventeen months:
Steps taken for overdue EMI nine to seventeen months are given below:
At first, we will review the security status of the clients and based on the nature of the default we
will undertake steps.
We will send final reminder letter to the defaulting clients, allowing them time up to 15 days to pay
the overdue amount.
In case of no response, we must have to serve legal notice through lawyers after getting
management approval.
Overdue EMI above Seventeen months:
If no improvement after the above actions, we may initiate the following action:
Circulate Name of defaulting clients, relevant persons and organizations among banks and financial
institutions of Bangladesh.
File suit under the Negotiable Instrument (NI) Act.
File suit under Artha Rin Ain.
1.5 At any point of overdue over 8 months, the following actions may be undertaken
under subjective judgment.
Restructuring / Reschedule the account- if seemed feasible.
Transfer accounts to block account- if seemed necessary.
Terminate the account- as initial step to filing ARA suit or to pressurize client.
Based on the nature of the default, appoint recovery/repossession agents with management
approval.