Managing Delinquency and Non-Performing Loans Training Course: Strategies for Sustainable Microfinance

Introduction

Delinquency and non-performing loans (NPLs) remain some of the greatest challenges facing financial institutions and microfinance organizations. Poorly managed delinquency not only weakens financial sustainability but also undermines the institution’s ability to expand credit access to clients. Understanding the root causes, prevention mechanisms, and effective resolution strategies is crucial to maintaining a healthy loan portfolio and ensuring long-term growth.

This training course equips participants with the tools and frameworks needed to analyze delinquency trends, implement early warning systems, and design strategies to reduce non-performing loans. Through practical case studies, risk assessment techniques, and modern collection strategies, participants will gain actionable insights into managing loan performance while protecting both institutional stability and client relationships.

Duration: 10 Days

Target Audience

  • Credit officers and loan managers
  • Risk and compliance officers
  • Portfolio and operations managers
  • Microfinance practitioners
  • Financial consultants and analysts

10 Objectives

  1. Understand the nature and causes of delinquency in lending
  2. Learn key indicators to measure delinquency and non-performing loans
  3. Apply early warning systems to detect loan repayment issues
  4. Develop practical strategies for delinquency prevention
  5. Strengthen loan recovery and collection processes
  6. Analyze the impact of delinquency on institutional performance
  7. Design restructuring and rehabilitation frameworks for borrowers
  8. Align delinquency management with risk management policies
  9. Utilize technology and data analytics for delinquency tracking
  10. Build sustainable approaches to minimize non-performing loans

15 Course Modules

Module 1: Introduction to Delinquency and NPLs

  • Defining delinquency and non-performing loans
  • Key drivers of repayment challenges
  • Global perspectives on NPLs
  • Importance of effective management
  • Case study overview

Module 2: Loan Portfolio Risk Indicators

  • Portfolio at Risk (PAR) measurement
  • Delinquency ratios and trends
  • Write-offs vs. rescheduling
  • Loan loss provisions
  • Benchmarking industry standards

Module 3: Causes of Delinquency

  • Client-related factors
  • Institutional weaknesses
  • External economic conditions
  • Loan product design issues
  • Behavioral aspects of repayment

Module 4: Early Warning Systems

  • Identifying early delinquency signals
  • Monitoring borrower repayment capacity
  • Loan officer reporting mechanisms
  • Red flag indicators in portfolio data
  • Proactive client engagement strategies

Module 5: Credit Appraisal and Prevention

  • Strong credit assessment frameworks
  • Improving borrower screening
  • Use of credit scoring tools
  • Loan structuring to reduce risk
  • Preventive loan monitoring

Module 6: Collections and Recovery Strategies

  • Principles of loan collection
  • Soft vs. hard collection methods
  • Field collection best practices
  • Negotiation and mediation techniques
  • Legal recovery options

Module 7: Loan Restructuring Approaches

  • Rescheduling repayment terms
  • Debt restructuring techniques
  • Rehabilitation of delinquent clients
  • Risks of repeated restructuring
  • Monitoring restructured loans

Module 8: Portfolio Segmentation in Delinquency Management

  • High-risk vs. low-risk borrowers
  • Sectoral portfolio analysis
  • Geographic risk clustering
  • Prioritizing collection strategies
  • Tailored solutions for segments

Module 9: Role of Credit Officers in Delinquency Control

  • Loan officer accountability
  • Performance monitoring systems
  • Training and incentives for staff
  • Communication with clients
  • Building repayment culture

Module 10: Legal and Regulatory Frameworks

  • Legal environment for NPL recovery
  • Compliance requirements
  • Borrower protection laws
  • Arbitration and mediation options
  • Best practices in enforcement

Module 11: Technology in Delinquency Management

  • Loan tracking systems
  • Digital reminders and notifications
  • Mobile-based repayment monitoring
  • Predictive analytics for risk
  • Integration of fintech tools

Module 12: Impact of Delinquency on Institutions

  • Financial sustainability implications
  • Operational efficiency concerns
  • Reputational risks
  • Social impact of rising NPLs
  • Mitigation strategies

Module 13: Best Practices in NPL Management

  • Lessons from successful institutions
  • Industry frameworks and guidelines
  • Global microfinance case studies
  • Policy-driven solutions
  • Collaborative approaches

Module 14: Case Studies and Practical Exercises

  • Analyzing delinquency data sets
  • Group exercises on loan recovery planning
  • Role-playing repayment negotiations
  • Real-world institutional experiences
  • Comparative analysis across regions

CERTIFICATION

  • Upon successful completion of this training, participants will be issued with Macskills Training and Development Institute Certificate

TRAINING VENUE

  • Training will be held at Macskills Training Centre. We also tailor make the training upon request at different locations across the world.

AIRPORT PICK UP AND ACCOMMODATION

  • Airport Pick Up is provided by the institute. Accommodation is arranged upon request

TERMS OF PAYMENT

Payment should be made to Macskills Development Institute bank account before the start of the training and receipts sent to info@macskillsdevelopment.com

For More Details call: +254-114-087-180

 

 

Managing Delinquency And Non-performing Loans Training Course: Strategies For Sustainable Microfinance in Antigua and Barbuda
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