InSight #26: Best Practices in Collections Strategies
By Tiodita Mori Tuesta, Bettina Wittlinger, Luz Carranza - Published: 2008
Past-due or non-collectible loans are part and parcel of the financial sector. As past-due rates surpass expected limits, though, this piece of the credit cycle can become a true problem. While often seen as a final step in the lending cycle, collections actually plays an integral role in the overall process. Drawing from the experiences of collections programs throughout Latin America and through the implementation of initial collections activities in India that are mainly focusing on individual lending methodology, this InSight explores “best practices” and considerations that an MFI should take into account when attempting to successfully implement collections activities.
