Loan delinquency management is arguably the most difficult aspect of the lending process yet often neglected when it comes to training and capacity building of staff. A healthy loan portfolio requires that the risk it presents must be identified at every stage of the loan process and appropriate mitigating measures adopted to effectively manage it. The involvement of all staff in the lending process is very critical in loan delinquency management.
This training course provides participants with techniques and the tools to improve lending process and its sustainability of their respective institutions through properly managed loan portfolios. It also looks at setting realistic interest rates and managing funding to achieve institutional sustainability.
The course objectives, among others, are to allow participants to:
- Analyze the causes of delinquency,
- Appreciate the costs of delinquency to the institutions and
- How to control delinquency
- Provide an opportunity to apply technical tools for controlling delinquency,
- Provide ways to assess and maintain a healthy loan portfolio and increase the skills of the institution, and
- Increase responsiveness of the microfinance institution towards its clients.
The detailed outline for the course is as follows:
- Effective recovery strategy
- Written Lending Policies
- Written Collection Policies
- Written Collection Procedures
- Identification of Delinquent Loans
- Methods of Managing Delinquency
- Model Guidelines on loan recoveries