New Delhi, Sept. 3 -- Asset Reconstruction Company (India) Ltd (ARCIL) is looking to move beyond buying stressed loans and tap the early-stress segment by launching a collections-as-a-service business, targeting loans that have started showing signs of delinquency but have not yet become non-performing assets (NPAs).

"There is a huge early bucket which is SMA -1 (special mention accounts-1), SMA -2.There is a huge collection of services that need to be given for that, so those are the services we want to provide to them," Phanindranath Kakarla, ARCIL's chief executive officer and managing director, told Mint.

SMAs are loan accounts showing early signs of stress, classified as SMA-0 (up to 30 days overdue), SMA-1 (31-60 days overdue) and...