In Finance, Loan Recovery means a collection of the amount due. And loan recovery starts when the person is not able to make repayment to the bank or other financial institutions as agreed. Loan Recovery normally recovery depends on the purpose, time and condition, business running process, etc. Normally the loan amount will be recovered on an installment basis. …
Individual and business Customers used to take a loan as per their needs. Some time banks reach the customers to provide loans or otherwise, a customer used to go bank for taking Loans. But The Loan Recovery comes into the picture when customer is not making the repayment of the loan either intentionally or due to financial problem or other reasons
The loan market in India has evidenced tremendous growth in the past decade.
However, with the increase in the loan market recently, the defaulters of the loan have also been found to be increasing, causing a major concern for the banks operating in India.
Hence, to tackle this issue some of the banks have been understood to be taking the help of loan recovery agents whose prime aim is to recover the loans from the defaulters through legal means.
This research aims at understanding the psychological phenomena that the loan defaulter goes through on being contacted by such loan recovery agents hired by the banks.