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.
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.
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.
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.
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.
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.