Salary of Collection Officer in India: Company Wise, Experience Wise, Jobs 2023

What is a Collection Officer?

The Collection Officers are primarily responsible for managing the collection of pending debts from the clients or the customers.

• Sectors like banks or loan granting agencies lend a certain amount of money at a given interest for some time and when the person fails to return the money, it is the duty of the collection officer to take the initiative.
• They are hired by various businesses or banks or agencies to reach out to customers and inform them about the due bills and recover them to avoid losses for the company.
• The collection officer also may be required to initiate settlements and negotiation plans to get the pending dues back.
• In case, a suitable plan is not reached then the collection officer initiates escalated collection actions.

Also Check: Banking Courses

What does a Collection Officer Do?

The primary role of a collection officer is to manage the due collection of the money lent by their organization to the concerned person. The main tasks of a collection officer are as follows:

• The collection officer has to keep a day-to-day record of the money lent, payment due, and keeping a record of the length of the delinquency.
• Advising on the repayment plans that suit the debt and customer circumstances.
• Using advanced collection activities like timely reminder messages and letters.
• Helping the customers with the financial advisors when required.
• Processing the customer’s payments, adjusting their accounts, and maintaining other transactional data.
• Working with the lawyers to check the criminal background of the customers and prepare proper legal actions in case the customer refuses to repay the lent amount

Types of Collection Officer

The collection officer’s job is a highly administrative profile. He/She is the one who oversees all the collection, credit, and financial reporting.

• He has expertise in reviewing credit applications, evaluating the record of the customer, and ensuring that staff is abiding by the collection policies according to the organization.
• The salary of a collection officer varies from Industry to industry and city to city.
• Though the metro cities offer a greater salary as compared to smaller cities, many banks offer a high salary to the collection officers. 
• There are various types of collection officers whose roles and responsibilities vary from organization to organization.

Collection Manager

• The collection manager manages the cash flow systems and identifies opportunities to minimize excessive loss and resolve credit disputes.
• They also determine a customer's eligibility for credit options by analyzing documents and financial status.
• The average salary of a collection manager is INR 4,00,000 per annum and ranges from INR 3,00,000 - 12,00,000 0er annum.

Accounts Receivable Manager

• It is an intermediate-level job. The task of an Accounts receivable Manager is to collect the payments on behalf of the company and supervise the accounts settled department.
• The candidate is well versed in all the accounting processes.
• The salary of the Accounts receivable manager ranges from INR 3,90,000 - 12,00,000 per annum, with an average of approximately INR 6,67,000 per annum.

Credit Controller

• This role requires building and maintaining strong relationships with clients and to check the daily debts and ensuring that the collection amounts are paid on time by the customers.
• The employee working as a Credit controller earns approximately INR 4,37,000 per annum, ranging from INR 2,50,00 - 15,00,000 per annum.

Retail Collection Agents

• Retail collection agents are required to collect debts owed by consumers to retail corporations.
• The collection company purchases a discounted claim to the debt from a retail company and then attempts to receive the payment in full directly from the customer in question.
• Retail collection agents collect any type of retail debt that can be acquired, from credit card bills to unsettled spa registries.
• The retail collection agents earn around INR 1,96,000 per annum.

Bad Check Recovery Collection Agents

• The bad check recovery collection agents are responsible for checking non-sufficient funds and collecting debts that stem from fraud.
• Such debts have the potential to add risk to the businesses and can seriously disrupt cash flow.
• The bad check recovery collection agents earn around INR 2,95,000 per annum on average.

Health Care Credit Collection Agent

• Nowadays medical debts become a serious problem referring to health insurance or medical bills, which patients find difficult to afford due to the ever-increasing cost of health facilities.
• Agents try to collect a debt under the contract between the health care provider and the collection company. The average salary of a health care credit agent is around INR 2,00,000 per annum.

Scope of Collection Officer in India

Whether it is a big business or a small bank, no one can work efficiently if they don't get back their due money on time. It is a big obstacle for the organization when its customers do not make timely repayments.

• In 2020, the outstanding debt in India was around 550 billion Dollars and the analysts have predicted the amount to increase in the years to come.
• With the increasing numbers of debt, the need for collection agents becomes critical of any organization. 
• Though the job of a collection officer is challenging due to various factors like convincing the customers to make timely repayments, discussing debts, etc.
• As per the latest study, the collection officer job will increase by around 20% in India.

Also Check: Accounting Courses