Risk Management and Fighting Delinquency Key to MFI Survival

Abstract

Loan defaults and mounting arrears are a bane for most microlending institutions. A proper risk management apparatus and identifying delinquency can help them tread the path of profit path. Social business, in the beginning, started off as NGO activity because there was a need to establish relationships at the grassroots level. Doorstep lending and collection has been the hallmark of microcredit in India. Rural households were willing to spare time only after their regular farm hours.