Delinquency Management - Toolkit

Loan portfolio is the most important and largest asset for an MFI, as it generates income (interest and fees). The motivation for a client’s prompt repayment is the expectation to get a bigger loan with advancing cycles. Any outbreak of loan delinquency can quickly spin out of control and can cause havoc for the MFI. Hence, ensuring that this asset (loan portfolio) is safeguarded (from delinquency) is very crucial for any microfinance institution. However, many MFIs lack a proper delinquency management policies and procedure. This toolkit attempts to help MFIs work towards building/strengthening their delinquency management policies and procedures and learn from best practices guidelines and lessons from the global microfinance experience along with relevant practical exercises. Toolkit Download Delinquency Management Toolkit Overview.pdf