Collections Has Changed. Most Systems Haven’t.

For years, loan collections in India followed a predictable playbook: missed EMI triggers a call. If the borrower doesn’t answer, escalate with more calls.

That model is no longer reliable.

Borrowers screen unknown numbers. Call pick-up rates continue to fall. Meanwhile, maintaining large call centres has become one of the highest recurring costs in collections operations.

This is not a behavioural problem. It is a channel mismatch.

Borrowers may ignore calls—but they read WhatsApp.

Used correctly, WhatsApp is not a replacement for collections teams. It is a high-signal, low-friction communication layer that helps NBFCs reduce early-stage delinquency without increasing operational pressure.

Below are five practices we consistently see working in real NBFC environments.

1. Act Before Delinquency, Not After

A large percentage of 1–30 DPD cases are not willful defaults. They are delayed salaries, missed reminders, or simple oversight.

Waiting until the EMI date passes is often too late.

What works:
Send a polite, informational reminder 2–3 days before the due date.

• Avoid threatening language
• Avoid payment ultimatums
• Focus on clarity and context

Example:

“Hi [Name], this is a reminder that your EMI of ₹12,500 is due on 5th Dec. Your statement is attached for reference.”

This reduces avoidable slippage and improves repayment discipline without involving agents at all.

2. Remove Payment Friction Completely

A reminder only works if repayment is effortless.

If the borrower has to:

• log into a portal
• remember credentials
• navigate multiple screens

…you have already lost momentum.

What works:
Embed a single-use, deep-linked payment option directly inside the WhatsApp message.

• UPI-first
• App-agnostic (GPay, PhonePe, Paytm)
• No login required

Operational impact:
Fewer abandoned attempts, faster settlements, and cleaner reconciliation when payments hit the bank.

3. Enable Response, Not Just Broadcasts

SMS and robocalls are one-way communication. WhatsApp doesn’t have to be.

When borrowers face short-term issues, the inability to communicate often leads to silent default.

What works:
Provide structured response options such as:

• “I will pay today”
• “I will pay in 3 days”
• “Need assistance”

These responses can automatically create Promise-to-Pay (PTP) entries inside your collections system.

• Calling is suppressed until the PTP date
• Agents focus only on genuine risk cases
• Borrowers feel acknowledged, not harassed

4. Use Documents to Reduce Disputes

Many payment delays stem from confusion, not intent.

Borrowers often ask:

• “Why is my EMI higher?”
• “Was interest recalculated?”
• “Why is there a penalty?”

What works:
Attach official documents directly in WhatsApp:

• Statement of Account (SOA)
• Repayment schedule
• Fee or penalty breakup

This immediately reduces disputes and follow-up calls. Transparency shortens resolution cycles.

5. Treat WhatsApp as a Regulated Channel

Collections communication is regulated. Personal WhatsApp numbers and unmanaged chats create risk.

What works:
Use the WhatsApp Business API, integrated directly with your LMS or collections platform.

This ensures:

• All messages are logged
• Language templates are approved
• Timing rules are enforced
• Complete audit trails are available

If a borrower raises a complaint, compliance teams can retrieve the exact communication history—without relying on agent recollection.

Conclusion: Automation With Boundaries

WhatsApp is not a shortcut to aggressive recovery. Used poorly, it can escalate complaints. Used correctly, it becomes a cost-efficient, compliant extension of your collections strategy.

The key is automation with guardrails:

• Triggered by loan state
• Logged centrally
• Integrated with accounting and reconciliation

Encore Pay integrates WhatsApp workflows directly with Encore Lend—covering reminders, payment links, PTP capture, receipts, and audit logging—without manual intervention.

If your collections team is still chasing borrowers one call at a time, Book a Demo to see how Encore Pay helps NBFCs reduce delinquency while lowering operational load.