Act before recovery escalates
Received a recovery notice? Clear dues now to avoid legal action
*Bajaj Finserv follows RBI-approved recovery guidelines. T&C apply.
What is a loan recovery notice?
A loan recovery notice is a formal communication issued when a loan account has overdue payments and requires the borrower to take appropriate action. It generally provides key information such as the loan account reference, outstanding dues, applicable charges, payment instructions, and the deadline for payment or response. The contents and next steps may vary based on the loan agreement, account status, and type of notice issued. Receiving a recovery notice does not by itself confirm a specific legal outcome. However, ignoring the notice may allow the recovery process to progress further, where applicable. After receiving one, check the loan details, date of issue, outstanding amount, response deadline, contact information, and any documents requested. Keep the notice and related loan records for future reference.
What to do immediately after receiving the notice
After receiving a loan recovery notice, check the loan details, overdue amount, and response deadline mentioned in it. Verify the outstanding dues through an official account channel. If you can make the payment, complete it within the given timeline and retain the payment confirmation. If you cannot pay the full amount or find any discrepancy, contact the lender and raise a query with the relevant details.
Steps to check your overdue amount and respond through the Bajaj Finance app or portal:
- Open the Bajaj Finance App or visit the My Account portal.
- Log in using your registered mobile number and complete OTP verification.
- Select your loan account using the loan account number (LAN) mentioned in the notice.
- Check the Overdue Amount or Outstanding Dues section for the exact figure payable.
- If you can pay, complete the payment using UPI, net banking, or debit card, and save the payment receipt or transaction confirmation.
- If you cannot pay the full amount or dispute the notice, go to Help & Support (or Raise a Request) and submit a query referencing the notice number, date, and your situation.
Once you have taken the required action, keep the payment receipt or service request reference number for your records. If you have raised a query about the notice or account details, retain the related communication until the matter is addressed.
What happens if the notice is left unanswered
Leaving a loan recovery notice unanswered can allow the overdue account to remain unresolved and the recovery process to continue. The next steps depend on the account status, repayment history, and the action required in the notice.
| Time After Notice | What Happens | Status on Loan Account |
| Within the stated deadline | Account remains overdue; opportunity to pay or respond is open | Overdue |
| Deadline passed, no response | Reported to CIBIL, if not already reported; recovery communication continues | Overdue, reported to credit bureau |
| Continued non-response | Account may proceed toward legal notice or filing, depending on the case | Default, moving toward legal process |
| Legal process initiated | Formal proceedings begin, timeline varies by case and is not automatic | Under legal process |
These steps do not follow a fixed timeline for every loan account. However, leaving the notice unaddressed can allow the matter to progress, making timely repayment or communication important.
Your rights when you receive a recovery notice
Receiving a recovery notice does not remove your rights as a borrower, and understanding them helps you respond appropriately rather than out of pressure.
- You have the right to receive the notice in writing, with the overdue amount and reason clearly stated
- Recovery agents are permitted to contact you only between 8:00 AM and 7:00 PM, in line with RBI's Fair Practices Code
- You have the right to be treated with courtesy, and recovery communication must not include threats, harassment, or contact with people outside the loan agreement
- You have the right to dispute an amount you believe is incorrect, by raising a query with supporting details
- Arrest is not an automatic consequence of a recovery or legal notice; it can only follow a specific judicial process, where applicable
If any communication you receive does not follow these standards, you can raise a grievance directly with your lender.
How to dispute or raise a grievance about the notice
If you believe a loan recovery notice contains incorrect information or that the recovery communication did not follow the applicable process, you can raise the concern through the lender's official channels. Provide the notice reference number, details of the amount or information you are disputing, and supporting documents such as payment proof. If your concern relates to the manner of recovery communication rather than the outstanding amount, you can raise it as a grievance through the lender's designated grievance channel. If the grievance remains unresolved, you can escalate the complaint through the RBI Integrated Ombudsman Scheme, subject to the applicable process.
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Frequently Asked Questions
Recovery Notice Basics
Rights & Resolution
Can I still pay my overdue EMI after receiving a recovery notice?
Yes, you can contact the lender through an official channel to confirm the current amount payable and available payment options. If you are able to clear the overdue amount, make the payment using an authorised channel and retain the transaction confirmation.
What should I do if I have already paid the overdue EMI but received a recovery notice?
Check your payment record and compare it with the loan account details mentioned in the notice. If the payment is not reflected, raise a query with the lender and provide the transaction reference, payment date, and receipt as supporting documents.
Can I request more time to repay after receiving a recovery notice?
You can contact the lender and explain your repayment situation to understand whether any applicable repayment option is available for your account. Any such option depends on the lender's assessment, loan terms, and account status, and cannot be guaranteed.
What should I do if I cannot afford the full overdue amount?
Contact the lender promptly instead of leaving the notice unanswered. Ask about the repayment options applicable to your loan and provide accurate information about your account. If you make a partial payment, confirm how it will be accounted for before proceeding.
How can I confirm that my loan account has been updated after making the payment?
Keep your payment receipt or transaction reference and check your loan account after the payment is processed. If the overdue amount or account status does not reflect the payment, contact the lender through an official channel and provide the transaction details for verification.
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