What about adverse management and the related automation?
If a loan reaches its instalment due date without any captured receipt, an internal countdown begins, preparing for potential handover if payment is not received.
Internal Countdown and NCR Sec 129(A) Notification: Twenty days before the loan reaches the minimum number of permissible auto-handover days, an SMS with the NCR Section 129(A) notification is sent to the client. During this period:
The client status changes to External Debt Collector Hold status.
The loan account status reflects as Overdue.
If no payment is captured by the end of the permissible auto-handover period:
The loan account status locks as Handed Over, and this change is submitted to the credit bureau via SACCRA.
All open collection tickets for the client will close with the reason: "Loan set to Handed Over".
Automatic Loan Write-Off Process and Related Changes
If a loan that has already been Handed Over remains unpaid until it reaches the permissible auto-write-off period, further actions are triggered.
Write-Off Trigger and Status Change: Upon reaching the auto-write-off threshold without a captured receipt:
The client’s account status transitions to Bad Debt Hold.
The loan account status is locked as Write-Off, and this change is submitted to the credit bureau via SACCRA. This status is final and cannot be altered.
Collection Ticket Closure: Any active collection tickets for the client will automatically close with the reason: "Loan set to Written Off".
Related Documentation
This ensures automated handling of overdue accounts, minimizing manual intervention while maintaining compliance with regulatory standards.
For more information on enabling automated adverse settings, click select the link below
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