Repossession policy

When repossession is considered

All of these must be true:

1. The loan is 90+ DPD, or the vehicle is at risk of being sold or moved out of reach (an RC transfer without our NOC, or GPS showing the vehicle outside the permitted region).
2. The borrower has been contacted at least three times, and a field visit has been made and recorded (KB-012).
3. Rescheduling under KB-005 has been considered and the reason it won't work is written on the case.

Approvals

• Collections manager recommends; regional head approves.
• Tractors and three-wheelers used for the borrower's only livelihood also need the Head of Collections' approval.

Conduct

Follow the notice and conduct rules in KB-024. No repossession at night, no force, no third party without our authorisation letter, and an inventory of the vehicle's contents signed at the yard.

Why we are careful

Repossession rarely recovers the outstanding. In our tractor book, early repossession in a deficit year recovered 54% of the outstanding after costs, against 71% of loans curing on their own after the next harvest (KB-031). Repossess when the asset is at risk, not as a collection tactic.