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WhatsApp was earlier popular for promotional and marketing messages. But now it is also being used to collect payments from loan defaulters. Debt collection startups like Credgenics and Spocto are using this platform extensively to connect with their customers to communicate with them properly.

Companies are saving message costs.

Earlier, companies used to send messages to customers for payment reminders for loan recovery. Due to this their message costs used to increase. WhatsApp has reduced the price of messages in the utility and operational categories by 50 percent. Due to this the cost of a message has become around 12 to 15 paise. At the same time, if the same information has to be sent through SMS, then the cost of a message is around 35 paise. According to Credgenics co-founder Rishabh Goyal, WhatsApp saves a lot in message costs.

How is loan recovery happening through WhatsApp?

Automated reminder: Banks and NBFCs (non-banking financial companies) send reminder messages to customers through WhatsApp before the loan repayment date. So that the person taking the loan can make the payment on time.

Customized notification: All the details related to the customer's loan amount, interest rent, and payment date are sent directly to their WhatsApp.

Secure payment link: Many companies send secure payment links on WhatsApp so that customers can make payments in one click. This reduces the confusion of clicking on fake links because the message comes from the official number of the company.

Customer support: If a customer is facing any problem in making a loan payment, then a WhatsApp chatbot or live agent can help them.

What are the benefits of WhatsApp loan recovery?

Messages are sent fast on the instant WhatsApp messaging platform. So that customers can respond immediately. This method of loan recovery through WhatsApp is more economical than phone calls or fieldwork. This is a customer friendly process. Customers do not have to face the problem of calls or recovery agents coming to their homes. Apart from this, companies do not have to bear the cost of expensive SMS.

Disadvantages of WhatsApp loan recovery?

Even though companies are benefiting from this, the risk of customer privacy and data leak seems to be increasing. If field agents send collection messages on WhatsApp, then the possibility of personal data leak increases. This can put the loan taker's privacy at risk.

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