Collection process of loan of IPDC Finance Limited

Abstract

In this report, collection process from of loans of operation department of IPDC Finance Limited has been described. This provides insight about that collection process of Non-Bank Financial Institution (NBFI) differs from traditional commercial banks. In three parts, this report is mainly divided. First part contains description about different types of loans like home loan, auto loan, which helps to know starting process collection process. In second part, various mode of collection like post-dated cheque, standing instruction, direct debit instruction and one off cheque deposit are discussed. Dishonor cheque management is also described here. Some ways of to improve the collection process are recommended in the third part which include educating the customer, decentralization of post-dated cheque entry, maintaining register for vault and better communication with relationship manager. These recommendations will make the process smooth through automation, ensuring proper flow of information and keeping track of cheque.