In this video series-1 on delinquency loan, Richard Turner, former Chief Credit Officer, ShoreBank, shares his observations on psychological aspects of managing problem loans and treating them as a learning experience. Richard stresses upon the need to identify problems at the monitoring stage only before they become full-fledged problem loans. He lists out the key signs that a loan officer must pay heed to while analysing the business during a monitoring visit. In addition to this, Richard shares how does a delinquent loan affects borrowers psychologically.
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An Effective Monitoring Visit Part 2
In this video series-2, Richard Turner, former Chief Credit Officer, ShoreBank, continues the session on monitoring visit by focusing on financial numbers of the enterprise and the profile of clients that the business is catering to. He adds that if 60% of the clientele is government agencies then the credit officer should review the receivables of the business. He also give pointers regarding the behaviour a credit officer should display if he finds that there is something wrong with the business.
An Effective Monitoring Visit Part 1
In this video series-1, Richard Turner, Former Chief Credit Officer, ShoreBank, shares his experience on how to prepare and manage an effective monitoring visit. Turner explains the importance of preparation prior to the visit. While at the visit, he outlines the dos and don’ts for the loan officer to get the most out of the visit. He emphasises that the loan officer must analyse the client’s business in terms of management, market and mathematics to ascertain the health of the business.
Individual Lending Effective Monitoring Practices
This video interviews credit administrators and loan officers who share the best way of monitoring loans. Elaborating the monitoring process for Bishara Imara – an individual loan product of Equity Bank Kenya – Equity team emphasise the importance of close relationship between a client and credit officer. They reveal that best monitoring practice is to never lose contact with your client and closely follow the loan till the time it is repaid. They also highlight the importance checking the business activities and ensuring that the loan amount is used for the purpose it was intended to.
Lending Cycle: Processing the Documents and Disbursement
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
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.