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Non-Banking Financial Companies (NBFCs) are vital in providing credit to sectors that may not have easy access to traditional banking services. However, NBFCs often face challenges in debt recovery due to the non-applicability of the SARFAESI Act, 2002. At NBFC ADVISOR, we specialize in providing comprehensive debt recovery advisory services tailored specifically for NBFCs to overcome these challenges and enhance their financial health.
Our Services
SARFAESI Act Advisory for NBFCs
We provide expert guidance on leveraging the SARFAESI Act for NBFCs:
- Eligibility Assessment: Determine if your NBFC meets the revised eligibility criteria for asset size and loan size.
- Procedure Guidance: Detailed procedures for issuing notices, taking possession of assets, providing final repayment chances, and repossession and auctioning of properties.
- Compliance Support: Ensure compliance with the revised SARFAESI Act limits, aiding in the recovery of smaller debts.
RBI Guidelines Compliance
Our team helps NBFCs adhere to RBI guidelines for loan recovery:
- Borrower Engagement: Establish mechanisms to identify borrowers facing repayment difficulties and provide necessary guidance.
- Fair Recovery Practices: Implement recovery practices that adhere to RBI’s guidelines, avoiding harsh methods and ensuring transparency.
- Grievance Redressal: Set up a dedicated grievance mechanism for recovery-related issues, with detailed processes for dispute resolution.
Engagement of Recovery Agents
We assist NBFCs in the effective engagement and management of recovery agents:
- Agent Verification: Conduct thorough due diligence, including police verification of recovery agents.
- Borrower Communication: Ensure borrowers are informed about recovery agents and any changes during the recovery process.
- Agent Documentation: Provide recovery agents with necessary identification and authorization documents.
Alternative Recovery Mechanisms
Develop and implement Board-approved recovery policies:
- Fair Practices Code: Create a Fair Practices Code for recovery, ensuring fair repossession, valuation, and realization of security.
- Periodic Reviews: Conduct regular reviews of compliance with the Fair Practices Code and grievance mechanisms.
- Debt Restructuring: Provide flexible repayment options for borrowers facing genuine difficulties, adhering to Board-approved restructuring policies.
Recovery Under the Negotiable Instruments Act
Our services include support for recovery under the Negotiable Instruments Act, 1881:
- Legal Proceedings: Assist in filing applications with the Debt Recovery Tribunal or pursuing civil suits for asset confiscation and debt realization.
- Compliance with NI Act: Ensure appropriate remedies under the NI Act for cheque dishonor and other default payments.
Management of Fund Transfers
Optimize your fund transfer processes with our expertise:
- Prompt Collections: Design and implement collection policies to ensure timely payments and reduce bad debts.
- Receivables Management: Develop strategies to minimize investment in receivables and associated costs.
Why Choose Us?
- Expertise: Our team has extensive experience in debt recovery for NBFCs, with a deep understanding of regulatory requirements.
- Customized Solutions: We provide tailored advisory services to meet the unique needs of your NBFC.
- Compliance Focus: We ensure that all recovery practices adhere to the latest regulatory guidelines and fair practices.
- Supportive Approach: We prioritize fairness and transparency in all recovery processes, safeguarding your reputation and customer relationships.