When an EMI is late, it is often because the borrower forgot, was not sure how much was due, or did not know how to pay. Those are problems you can fix before they cost you a collection visit. Here are seven habits that help.
1. Make the amount and the date impossible to forget
Give every borrower their full schedule at the start: each date, each amount. Let them see it again at any time, on their phone if you can.
2. Remind before the due date, not after
A short message a day or two before the date catches the forgetful. Keep it polite and specific: the amount, the date, and how to pay.
3. Make paying easy
Show exactly how to pay: a payment QR code, an account number, or a payment link. The fewer steps, the fewer excuses.
4. Confirm every payment with a receipt
A receipt after each payment removes the argument about whether it was made, and it teaches borrowers that you keep careful records.
5. Follow up on day one
The first day an EMI is late is the easiest day to resolve it. Waiting a week makes the conversation harder for both of you.
6. Give collectors a clear list
Each collector should know exactly which borrowers to contact today, and only those. A shared, current list stops two people chasing the same borrower and nobody chasing another.
7. Talk early when someone is struggling
A borrower who tells you before they miss a payment is easier to help than one who goes silent. Be clear in advance about what you can offer, such as a rescheduled date, and write down whatever you agree.
If you charge late fees, state the rule in the agreement and apply it the same way to everyone. Check the limits that apply to you where you lend.
Keep your loan book in order
Lend Chief builds the schedule, records every payment and keeps documents with the loan. 14 days free, no card.
Start your 14-day free trial