Calcutta, Mar 12: Auto financiers are looking for recovery agents in order to recover money lent to transport operators. Large players in this segment such as GE Capital and Citibank are among those scouting for good recovery agencies.Telco deputy general manager (hire purchase) UK Goel said that recovery agencies will soon become an important component of the auto-financing industry. Goel was speaking at a meet organised by the Hire Purchase and Lease Association with officials of Telco. He said, these agents will be responsible for undertaking negotiations with the customers on behalf of the auto-finance company. They will also undertake investigations into the creditworthiness of the customers to whom the auto-finance company is lending money. In case of defaults, the recovery agent will have the mandate from its principal to take steps for recovering the funds.
While the larger non-banking finance companies can have their own recovery agents, smaller NBFCs may, as a group, hire such agents so as to distribute the overhead costs evenly.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
