Deputy Collections Manager Interview Questions and Answers

Banks can cover loss after settlement through various methods.

• Banks can use insurance to cover losses

• They can also set aside funds for potential losses

• Banks can also try to recover losses through legal means

• They can also adjust interest rates or fees to compensate for losses

• In extreme cases, banks may need to write off the loss as a bad debt

Customers go into NPA (Non-Performing Assets) or written off when they fail to repay their loans for a certain period of time.

• NPA is a loan or advance for which the principal or interest payment remains overdue for a period of 90 days.

• Written off is when the bank or lender removes the loan from its books as an asset and declares it as a loss.

• Customers can go into NPA or written off due to various reasons such as financial difficulties, job loss, or business failure.

• Banks and ...read more