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The Collection Code of Conduct has been drafted in the interest of the Customer.

Every employee of Svasti should abide by the following rules in collection money from customers.

Principles

  1. Treat clients with dignity and honesty, whether customers are paying on time or not.  Be respectful and controlled.
  2. Use courteous language, maintain decorum, and be respectful of cultural sensitivities during all interaction with clients
  3. Follow all procedures outlined in the Ops Manual, and in particular, the following:
    1. Conduct the collection meeting efficiently and punctually
    2. Report the information on the Collection Meeting accurately and truthfully
    3. Sign on the loan card of every customer as proof of receipt of the installment
  4. Employees will not have personal or financial dealings with customers outside of the customers’ relationship with Svasti and any prior relationship that the customer might have had with the employee.
  5. Employees will not go to a client’s home for collection unless the client has not paid for at least two installments (except, of course, if that is the center for collections).
  6. Do not talk badly of one member in front of others, whether the member is present or absent.
  7. Do not discuss internal branch matters or other employees with clients.
  8. In case of any issues in the group call for a separate meeting with the group and discuss the terms of the loan, the group guarantee and the benefits of maintaining group cohesion.  Take the help of a supervisor if needed (refer to section III for more details).
  9. In the case of any group guarantee invocation a meeting must be held with the group as soon as possible in order to clear up any issue that might reduce group cohesion.
  10. Staff doing collections should carry ID proof for all collections.
  11. All members are to be given training (Training Meeting -2 at Svasti) about rules and regulations of collections.
  12. Svasti staff members should correspond with the members only during office hours unless it is required for official communication or stress during collections.
  13. All cash transactions, except scheduled loan repayments, be made only in the branch premise in supervision and knowledge of the relevant branch staff.

Unacceptable Collection Practices

  1. Do not use abusive language or yell at clients.
  2. Do not use physical force
  3. Do not enter the client’s home uninvited
  4. Do not humiliate the client verbally or physically
  5. Do not violate the client’s right to privacy as given in Svasti’s Client Privacy Policy
  6. Do not take possession, even if temporary, of any of the client’s possessions in lieu of arrears or as a penalty for non-payment.
  7. If there is a death or an accident in a client’s household, do not be insensitive or aggressive.  Do not pressure the client to pay in such times of distress.

Acceptable Collection Practices

  1. Collect from groups at the allotted collection center.
  2. If a client has not paid her installment
    1. Talk to the rest of the members during the collection meeting, remind them of the group guarantee, and motivate them to collectively pay her installment.
    2. Call for a meeting of the group and discuss the issue with them to ensure that it does not happen again and that group cohesion is maintained.
  3. If the client has repeatedly not paid
    1. Talk to the client to try and understand the issue.
    2. Talk to the rest of the household, and in particular, the head of the household (the one who signed the loan application form with the member) and motivate them to settle the issue with the errant client.
    3. Talk to the rest of the group members and resolve any issues.  Ensure that the cohesion of the group is maintained.
    4. If necessary, visit the client at her home.
  4. If at any point you feel that you cannot handle it on your own, call your supervisor.
  5. In case of genuine problems faced by a client in making payments, remind the remaining members of the group of the group guarantee, and that in the event of their facing a similar problem the rest of the group will be there to help.

The Hindi version can be found here.