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The banking sector plays a pivotal role in the
financial ecosystem, and central to its functioning is the ability to manage and recover debts effectively. This introductory course on Debt Recovery for Bankers is meticulously designed to cater to professionals aiming to gain a comprehensive understanding of the debt recovery process within the banking environment.
Spanning eight modules, the
course sheds light on the foundational concepts of debt recovery, diving deep into its importance, legal frameworks, best practices, and emerging
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• New Bank employees in credit and recovery roles
• Debt collection agencies
• Legal professionals
• Microfinance personnel
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Introduction to Debt Recovery
• Definition and importance of debt recovery in banking
• The life cycle of a loan
• The cost of bad debts to the banking industry
• Debt classifications: Performing vs. Non-performing loans.
Legal and Regulatory Framework
• Key laws and regulations governing debt recovery.
• Rights and obligations of the creditor and debtor
• Understanding the foreclosure process
• Legal implications and potential challenges
Debt Recovery Strategies and Techniques
Pre-default strategies
• Early warning signs
• Proactive communication with the borrower
Post-default strategies
• Classification of delinquent accounts
Different approaches based on the type and amount of debt.
• Debt restructuring and refinancing options.
• Use of technology in debt recovery
• Role of debt recovery agencies
Communication Skills and Techniques
• Importance of effective communication
• Strategies for effective negotiations
• Managing challenging situations and difficult clients
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Upon successful completion of this course, participants should be able to:
• Understand the Basics of Debt Recovery: Define debt recovery and its significance in the banking sector, differentiating between performing and non-performing loans.
• Identify and comprehend key laws and regulations governing debt recovery, including the rights and obligations of both creditors and debtors.
• Design and implement both pre-default and post-default recovery strategies tailored to specific debt scenarios, ensuring maximal recovery chances.
• Utilize negotiation skills and techniques to navigate conversations with debtors, emphasizing the importance of professionalism, empathy, and relationship-building in communications.
• Recognize the importance of accurate record-keeping in the debt recovery process, understanding the types and purposes of various documentation involved.
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