Title: Loan recovery strategies adopted by banks in India: experiences of the defaulters

Authors: Rajib Lochan Dhar

Addresses: Symbiosis Institute of International Business, Symbiosis International University, G. No. 174/1, Hinjewadi, Taluka-Mulshi District, Pune 411 057, Maharashtra, India

Abstract: 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 any (including illegal) 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. Qualitative methods have been used to collect the data via 16 in-depth interviews. Based on the study findings, there is an imperative that the societal forerunners and philanthropists continue to use research findings to highlight the prevalence of unethical practices and curb the same.

Keywords: bank loans; loan recovery; recovery agents; loan defaulters; qualitative methods; India; psychology; unethical practices; ethics.

DOI: 10.1504/IJICBM.2013.053102

International Journal of Indian Culture and Business Management, 2013 Vol.6 No.3, pp.257 - 273

Published online: 13 Dec 2013 *

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