Delinquency Management

Delinquency is one of the major challenges that microfinance institutions face. The course enables participants to understand delinquency by tracing its causes and costs. To hasten appreciation of delinquency, it offers various perspectives on delinquency from the vantage point of the borrowers and the microfinance institution. Participants will also be taught on how to measure delinquency using international standards. The course prescribes report formats integrated in the MFI’s information system to track important information for decision-making. The delinquency management course emphasizes both preventive and curative strategies. Preventive delinquency management strategies include financial shields or prudent financial management practices; growth strategy; and delinquency prevention techniques in microfinance methodologies. Curative delinquency management strategies include prioritizing delinquency management measures; remedial management and litigation; crafting incentives system to reduce delinquency; establishing the delinquency task force; loan administration strategies to delinquency management; and crafting delinquency management plan. The course will also present research results on the most common delinquency problems that MFIs face, and how successful MFIs have addressed these problems.