..::.. Punjab Scheduled Castes Land Development & Finance Corporation

At the time of disbursement of loan to the loanee, repayment Chart of loan instalments is also provided to the loanee which shows the dates and amount of each instalment to be paid by the loanee. The loanee can repay the instalments at Head Office or at respective District Office and he gets recovery receipt for that. If the loanee does’t repay the instalments on due date than he is liable to pay penal interest @ 5% beside the normal rate of interest for default period. A simple notice is also issued to the loanee by post in due course. If the loanee does’t repay the instalment 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. Even after the issuance of Show Cause notice the loanee does’t repay the instalment a lump sum recovery notice is issued. If he still failed to repay the due instalment thereafter a final notice is issued. In which it is stated that If He does’t repay the lump sum amount, The recovery case would be forwarded to SDO (c ) for determination of loan under ALR Act. The case is determined by the SDO(c) and thereafter is sent to District Collector for recovery. If the loanee repay full amount of loan along with interest/Penal interest,No Due Certificate is issued thereafter to the loanee.