This presentation is based on the study of loan servicing of HBFCL’s default management & recovery practices. It covers various issues in three parts, in Part A it is loan servicing & default management (theoretical), in Part B it is HBFCL’s default management & recoveries practices, and in Part C it gives the case study of HBFCL on turn around in terms of recoveries. Recovery is the most important function of a Loan Giving Institution. In a way recovery process starts even before the actual lending. Amount of monthly installments, remain unpaid after the due date of payment and the consequential charges becomes payable on un-paid installment.