Proper processing of documents is another important step in the Lending Cycle. This video discusses the practices that MFIs use to ensure that all the documents are properly prepared. It also describes the preparation of documents to initiate disbursement
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Steps of Managing Loan Delinquency
This video discusses the typical steps followed by Equity Bank Kenya to manage a delinquent loan and describes the recovery process of Biashara Imara product. Equity bank team explains that the process begins with a call to the borrower followed by a visit to his/her residence. If the loan amount is still arrear then the bank issues a soft demand letter which is followed by repossession process. They also outline the need to identify the pressure points for each borrower to ensure recovery, i.e some people are more attached to their families than the business and vice versa.
Loan Approval: Larger Loans
In this video, Equity Bank Kenya shares their process of approving larger loans. Equity Bank team explains their process to sanction loan above USD3000, which requires second level approval from the head-office. It further requires mapping of the business and residential premises of the client. Richard Turner, former Chief Credit Officer, ShoreBank concludes the topic of loan approval practices.
Improving MIS in Indian MFIs: An assessment with suggestions for active engagement
This paper discusses the scope of improvement for MFIs in IT. A range of areas has been summarised which can be developed to improve the usage of IT in MFIs.
Loan analysis (Tricks of the trade): Part 2
In this video series-2, Richard Turner, former Chief Credit Officer, ShoreBank, ends his argument by explaining the last circle: Management. Here he talks about the importance of analysing management capacity when making lending decisions. He further explains the need to make alternative projections before writing loans up for approval.
Lending Cycle: Credit Committee
This video highlights the most important stage of credit cycle – Credit Committee – where a loan officer presents his/her case along with suggested loan amount for analysis. Join a typical Credit Committee of Equity Bank and see how the loan proposals get approved and rejected. The committee explains the reasons for selection and returns the rejected loans to the respective loan officers for further analysis. However, the credit committee may reject a loan if it does not comply with Biashara Imara lending policies.