Important Tip : The loan department should discuss the case and forward its remarks to the recovery department. The recovery department should verify all the details - collect information aboutthe borrower, co-borrower, and guarantor, check whether any of them are already guarantors in other accounts, etc. and then submit their report to the Head Office.
While sanctioning a personal loan, ensure that the borrower has valid health insurance and term insurance, that the policies have not expired, and that they are being renewed regularly. While sanctioning the loan, ensure that the borrower’s passbook and the cheque provided belong to the same account, and verify whether regular transactions are taking place in that account. Obtain a photocopy of the guarantors’ active bank account passbooks and record detailed information about them in the loan application...(To continue, open the magazine)