Delinquency Management for Microfinance

Course details

This course is designed specifically to provide bankers; working in microfinance units, with the necessary helping tools to develop their skills, taking into account the importance of delinquency management and the 81:/pricing of interest. The course aims at securing a successful future for the bank and reduces the delinquency risks, which affect the 81:/pricing of interest. Hence, they affect the continuity of banks in providing financial services for micro-sector industries.

Course Objectives:

• Determine the cost of delinquency and refraining from payment and measuring their financial effects
• Explain how to measure delinquency and how to control it
• Apply scientific approach in the 81:/pricing of interest

Course Outline:

Module 1: Analysis of reasons and costs of delinquency for microfinance

• Nature and reasons of delinquencies
• Costs of delinquencies and refrain from payment
• Financial impacts of delinquencies and refrain from payment

Module 2: Measuring Delinquencies and How to Control Them

• Loan portfolio
• Accounting treatment of custom deficit debts and the expenses of Non-Performing Loans
• Impact of the expenses of Non-Performing Loans, custom and deficit debts on financial statements
• Factors affecting delinquency management
• How to manage delinquencies
• Main pillars of delinquency prevention

Module 3: Determining Interest Rates for Microfinance

• Concepts of calculating interest rates
• Identify interest rates that ensure sustainability
• Methods of calculating interest rates ensuring sustainability
• Effective interest
• Addressing barriers hindering the achievement of sustainable interest rates
• Proposed strategy for effective delinquency management

Assessment Strategy:

Participants will be assessed according to their active participation during sessions and exercises