Compliance of all formalities required for Auction as described in the following paras shall be ensured before conducting such Auctions.
      
1.Overdue Loan accounts shall be identified and registered notices   sent as per the timelines prescribed above. If the borrowers fail to repay the dues within the timelines prescribed, such accounts will be marked for auction.

2.Board approved Auctioneers appointed at various centers shall be assigned with the Auction process.

Requests for postponement of a scheduled auction shall not be considered generally. However, the Company may, at its discretion, permit postponement of the auction provided at least part interest dues are paid immediately and the borrower undertakes to close the loan.  If the loan is not repaid, the auction will be carried out in such cases notwithstanding the remittance made towards interest/ principal.

Part payment of Principal/Interest will be accepted at any point of time up to loan closure due date as per the loan sanction. Thereafter, part payment can be allowed using discretionary powers as per delegation.

However, making part payments will not entitle the borrower for seeking postponement of the auction and unless the entire dues are repaid, auction of the collateral security in a loan account will be conducted as per Auction Policy irrespective of such part payments made.

No extension of loan period will be permitted in deviation of the above rules. Auction proceedings will be completed within 3 months from the loan due date before which the borrower should close the loan

If auction is triggered for any other reasons where probable loss is anticipated vis-a- vis the realizable value of security, all processes connected with the Auction like sending Auction Notices by Registered post, publishing in Newspapers etc. will be followed and auction will be conducted following the normal  procedure.

1. Auction due to depletion in the value of security due to fall in prices etc. (auction before completion of tenure)