LenDenClub procedure is built around dignity and respect to customers. Believing in following fair practices with regard to the collection of dues and thereby fostering customer confidence and long-term relationship.
The repayment schedule for any loan sanctioned by LenDenClub is fixed. The same is offered after taking into account the paying capacity and cash flow pattern of the borrower. LenDenClub keeps the method of calculation of interest and how the Equated Monthly Instalments (EMI) or payments through any other mode of repayment will be appropriated against interest and principal due.
The guidelines related to the collection mechanisms for loan products offered by LenDenClub are as stated below:
- SMS Strategy
Reminder SMS is sent to all customers’ before the due date to remind them about their payment.
- Calling Strategy
Awareness calling is conducted by service quality team for all customers’ post their loan disbursement to make them aware of their product structure, due amount and the instalment date which enhances customer experience and to ensure minimal operational delinquency towards early tenure of the loans.
- Pre-Bounce or Reminder Calling
Conducted under 2 circumstances:
a) For the first 3 months, all customers are called and reminded about their impending due date and requesting them to fund their account before the due date.
b) After 3 months, only customers who have missed their repayment previous month, but paid within the end-of-a month, will be called and asking them to fund their account before the due date (so that these accounts will not become overdue post EOM) irrespective of ECS/Cheque or cash mode repayments.
- Bounce Calling
Bounce calling is done to customers whose cheque/ECS/ACH has bounced during the month, insisting them to repay the overdue instalment with applicable charges by tele- calling collection team.
- Field Visit Strategy
Prior to the field visit, the collection team refer to the tele-calling trial recording. The collector visits the customer at his/her residence or workplace to establish contact, negotiate and collect the repayment.
- Dunning strategy
Reminder notices are sent along with letters for debt collection which serves several purposes including soft-collections and prelude to legal strategy. Different types of notices will be sent to the customer as per axing.
At LenDenClub, we’re always trying and improving our success rate. The Customers are expected to adhere to the repayment schedule agreed to and approach LenDenClub for assistance in case of genuine difficulty in meeting repayment obligations. Currently, we follow the above-mentioned strategies for collections and keep trying variations in it so as to know the exact implementation of these strategies as and when required. Moreover, these steps are overall collection acts taken by Lendenclub however, product to product this process varies.