{"id":255,"date":"2026-07-23T07:49:29","date_gmt":"2026-07-23T02:19:29","guid":{"rendered":"https:\/\/cadreodr.com\/blog\/?p=255"},"modified":"2026-08-31T15:08:53","modified_gmt":"2026-08-31T09:38:53","slug":"recovery-of-debts-with-and-without-intervention-of-courts","status":"publish","type":"post","link":"https:\/\/cadreodr.com\/blog\/recovery-of-debts-with-and-without-intervention-of-courts\/","title":{"rendered":"Why are NBFCs Quietly Moving Small-Ticket Recovery Out of the Courts"},"content":{"rendered":"\n
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TL;DR<\/h2>\n

\n For small-ticket loans, court recovery is slow, costly, and hard to scale. NBFCs are shifting to out-of-court routes such as settlement, SARFAESI, arbitration, and ODR, which resolve disputes faster and can be applied to portfolios of any size.\n

\n Recovery of debts with and without intervention of courts depends on the loan type, ticket size, borrower profile, and how fast you need resolution.\n

\n CADRE<\/strong>, India\u2019s simplest online dispute resolution platform, runs settlement, arbitration, and ODR on one system, so NBFCs recover faster without managing separate processes.\n <\/p>\n<\/div>\n\n\n\n

A defaulted small-ticket loan is usually a hard case. The borrower has missed payments, the contract is clear, and the paper trail is sitting in the file. <\/p>\n\n\n\n

So what could go wrong? A lot, once you take it to court. A claim that should be settled in a few hearings drags on for years and costs more than it returns. When you multiply that across a book of thousands of overdue accounts, litigation stops working as a recovery strategy.<\/p>\n\n\n\n

This is why more NBFCs are routing small-ticket debt recovery away from the courts, toward faster, settlement-led, and digital options. <\/p>\n\n\n\n

Let’s look at why the courtroom falls short for low-value loans, and the routes NBFCs are choosing instead.<\/p>\n\n\n\n

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