The collections & recovery policy of Peerfintech Solutions Private Limited shall aim at making the recovery process faster to avoid any NPA (Non-Performing Advances). The policy is aimed at strengthening the management and recovery of NPAs and proactive initiatives to closely monitor existing accounts.

Continuous and regular follow up is the underlying principle of a good recovery policy and also for early detection of any NPA. Approach for recovery should be practical and non-prejudiced. Fair treatment and persuasion are the basic principles of recovery mechanism. Internal recovery team is going to look after the recovery of amount of the company. Recovery team needs to follow the specific code of conduct which is prescribed by the company

The repayment record of borrowers shall be monitored both with regard to payment of interest and repayment of capital. Whenever a borrower defaults or is likely to default, rigorous follow-up shall be made for the collection of dues or arrears. When default occurs, oral and written communications are to be sent to borrower to regularize their accounts within a specified period.
Peerfintech shall use any of the following broad methods for management of problem accounts:

• Restructuring, rephasement and rehabilitation
• Settlements / compromise
• Legal action & recovery
• Write off

Pre-EMI and borrowers within 30 days past due

• Automated SMS/ emails are made to borrowers before the due date to avoid any delay in payment and penalty.
• The automated SMS/ emails which are to be sent to borrowers are outsourced to third party.
• If the borrowers fail to pay any amount even after various reminders then they are to called by the in-house team.

Borrowers after 30 days past due but within 90 days past due

• Borrowers who are in default of 30 days of payment from due date, their case move to the in-house collection team for taking regular follow-ups.
• If borrower doesn’t cooperate over phone calls then physical visit becomes necessity.

Borrowers after 90 days past due

• Borrowers who fail to make payment even after 90 days from due date, then legal proceedings should be initiated against them for the recovery of amount.
• The cost of recoveries from the borrowers is borne by the lenders who have invested their amount in the respective borrowers.

Other clauses

Late fees: For any default or delay by the borrower in payment for dues towards interest or EMIs to any investor, a late fee shall be charged % of the EMI amount ascertained for that particular investor; as stated below:

Late fees: For any default or delay by the borrower in payment for dues towards interest or EMIs to any investor, a late fee shall be charged % of the EMI amount ascertained for that particular investor; as stated below:

Days	Late fees
01-10 days	5%
11-20 days	7.5%
21-30 days	10%
31-50 days	25%
After 50 days	25% plus .05% interest rate on the EMI amount compounded annually

This late fees shall be payable from the date of the default or delay till such date as the EMI alongwith applicable interest is repaid by the borrower to the investor. This shall be without prejudice to the investor’s other rights available as per the Loan Agreement and/ or under law.

Prepayment of loan: The lender cannot ask the borrower to prepay the loan amount, but the borrower can pay on its own on a prepaid basis subject to the conditions laid down in the Loan Agreement. Please note that:

• Prepayment of loan would only reduce the tenure of loan not the amount of EMI.
• The above conditions are subject to change at the sole discretion of Lend Tree. These changes will be effective for on-going loans as well as new loans.