Repossession: notice and conduct

This note describes principles in plain words; it is not legal advice. The detailed requirements are in the RBI's current directions and in the loan agreement. Check both, and ask Legal, before any repossession.

Notice

• The borrower is given written notice before repossession, with the amount overdue and a reasonable time to pay. The loan agreement sets out the notice terms; follow them exactly.
• The notice goes to the address on the file and is recorded on the case.

At the time

• Only authorised staff or agents carrying our authorisation letter.
• No force, no repossession from a person driving the vehicle on a public road in a way that endangers anyone.
• An inventory of the vehicle and its contents is made and signed at the time, and a copy given to the borrower.
• The local police station is informed as the loan agreement and local practice require.

After repossession

• The borrower is told where the vehicle is and how to redeem it by paying the dues.
• The vehicle is sold only after the redemption period, at a fair price, through a transparent process. Any surplus after the dues and costs is returned to the borrower.

See KB-006 for our internal approvals.