At the time of disbursement of loan to the loanee, repayment Chart of loan installments is also provided to the loanee which shows the dates and amount of each installment to be paid by the loanee. The loanee can repay the installment at Head Office or at respective District office and gets recovery receipt for that . If the loanee does not repay the installments on due date then he is liable to pay penal interest @5% beside the normal rate of interest for the default period. A simple notice is also issued to the loanee by post in due course. If the loanee does not repay the installment on issuance of simple notice , then a joint notice issued to the loanee. Even after issuance of joint notice, loanee doesn’t repay the amount, then a show cause notice is issued. If the loanee doesn’t repay six installments continuously or he doesn’t repay any amount upto one year a Lump Sum recovery notice is issued. If the loanee mis utilized the loan amount ,in that case also a lump sum recovery notice is issued and penal interest will also be charged from the date of disbursement of loan. If he still fails to repay the due installment therafter a final notice issued. In which it is stated that if He doesn’t repay the Lump sum amount, Then recovery case would be forwarded to SDM(C) for determination of loan through ALR. The case is determined by the SDM(C ) and thereafter is sent to District Collector for recovery. If the loanee repay full amount of loan alongwith interest /penal interest, No Due Certificate is issued thereafter to the loanee.