SETTLEMENT POLICY

Settlement Policy of the Bharatiya Fincom Pvt Ltd covers all loan types and shall allow for compromise settlement of all receivables under an agreement with the customers. The policy does not cover fraud, malfeasance and wilful defaults. It is for the management of Bharatiya Fincom Pvt Ltd to decide if they have to extend this facility to the borrower or not. In case the Bharatiya Fincom Pvt Ltd holds the borrower’s security/assets and is sure to recover both the principal and interest in full, they may reject the borrower’s plea for OTS. If mutually agreed, the compensation arrived should preferably be paid in one lump sum. In cases where the borrowers cannot pay the entire amount in one lump sum. The company Management feels there is a genuine reason, it can at it its discretion collects at least 25% to 50 % of the settlement amount upfront, and the balance amount recovered in instalments within a period of a specified time together with interest.

Factors to be reckoned with at the time of settlement offer

1. Realizable value of securities
2. Present status of the customer
3. Possibility of better recovery through other means
4. Impact of sacrifice on profitability
5. The premise of benefits to both sides

SETTLEMENT / OTS

• SETTLEMENT / OTS process to be followed for Resolution of the accounts.
• Waiver Matrix as approved by Board to be followed.
• SETTLEMENT / OTS not to be lower than the cost incurred on purchasing the portfolio.
• All settlements are to be validated and closed in the system on successful completion of the terms.
• Any changes in the Waiver Matrix to be approved by Board.
• In case of a customer’s death, the legal heir can submit the requisite proof and request for zeroization of the account.
• The offer of Settlement and to whom and the amount of waiver will be at the sole discretion of the Management Team / Board of Bharatiya Fincom Pvt Ltd Pvt Ltd.

SETTLEMENT PROCESS / OTS UPDATE

1. The AGENT does Settlement negotiation
2. Collecting OTS request letter/email/voice confirmation from the borrower
3. the concerned manager does OTS verification call ger
4. Initiating OTS in PMS by Tele-caller
5. Review and recommendation by Supervisor based on OTS matrix
6. Post approval by delegation offer letter will be downloaded/emailed from PMS and forwarded to the borrower
7. According to the OTS conditions borrower will remit the desired OTS amount in the concerned Bharatiya Fincom Pvt Ltd account and provide the payment acknowledgement
8. Based on payment acknowledgement, AGENT will verify and forward the payment confirmation to FINANCE to update in PMS
9. Post updating closure process will be done by the Operations Department post confirmation from FINANCE
10. After closure system generated NDCs will be forwarded to the concerned AGENT
11. AGENT will send NDC to the borrower

NDC

12. OTS approval to be sought, payment to be collected as per the schedule OTS
13. Payment acknowledgement from the borrower and to be sent for updating the Operations Department
14. Post updating in PMS, Operations Department will close the case in the system only if the entire agreed payment has been received as per the sanctioned OTS.
15. Post closure system generated NDCs will be forwarded to the AGENT
16. AGENT, in turn, will send the NDCs to the corresponding borrower