Prepared In Last Assignment ( Janalakshmi Financial Services ) Will Help to Janalakshmian t make a solid Collection Discipline. Uploaded as many of Part is not useful for Me Today.

1. COLLECTION DISCIPLINE
&
HANDLING WITH DELINQUENCIES

2. OBJECTIVE
At the end of this session you will be able to understand
 What is a Collection Discipline
 Tools to Improve Biometric
 What is PAR ( Overdues)
 Reason of Overdues
 Effect of Overdues
 Handling with Overdues

3. WHAT IS COLLECTION DISCIPLINE
 The Success of Organization is largely attributable on client payment discipline.
The Sound planning of allocation of date and time of business area is the first
Key of repayment discipline.
 Date and Time allocation
This practice must happened simultaneously with Area Survey by allocating the fix date
for a business area where there is a projection of one Day Crec Productivity ie. 140 – 160
Clients. This is for Better Time Management , Cost minimization, Risk Mitigations , and
maximum productivity per day..
 Less NFD Change
This Practice will help to reduce the frequent Change in NFD in each and every first
Week of Month in sense of Time and Date change.
Examples of Burst and Best DL discipline

4. BURST CASE OF DL AT A GLANCE

5. BEST CASE OF DL AT A GLANCE

6. CreC Name :…………………………………………………………………. Cluster name : ……………………………………………………………………………………..
Area name Date/Time 7:00 AM 8:00 AM 9:00am 10:00am 11:00am 12:00pm 1:00pm
Ram Nagar 7
Babita House
15 Sita House 10
Ramani House
18 Sitara House 15
Adrash Nagar 8
Digha 9
Sony House
20
Laxmi House
15
Kalawati House
20
Chai Tola 10
Resham House
18
Ghandhi Nagar 11
Mahendru 12
13 Pl keep it Blank till rest of date cover ( Will Help for 15th August date Collection Etc.)
Sherapura 14
Kamaniya 15
Collection Planning Chart

7. TOOLS TO IMPROVE BIOMETRIC
 Importance of Biometric
Microfinance Loans are based on mutual guarantee of clients and the
attendance on center make on date on time recovery . maximum clients
on center means minimum risk in repayment.
Burst Case of Biometric
CREC Name No Yes Grand Total
Biom % Rating
Madhur Kapoor 150 8 158
5 Critical
Manoj Garasiya 277 515 792
65 Significant
Manoj Sisodiya 139 429 568
76 Good
Neelesh 199 550 749
73 Significant
Om Prakash Poddar 165 320 485
66 Significant
Rajpal 235 398 633
63 Significant
Santosh Kumar Parmar 223 338 561
60 Significant

8. STRATEGY TO IMPROVE BIOMETRIC ( USE OF SFDC )
Area & Center
Name NO Yes Grand Total BioM % Rating
Commitment By
MCL MCL Sign
Area: BHIKHANA
PAHARI (CHAI TOLI)
1- Centre:SANJU
House
2 0 2
0 Critical
Area: BHIKHANA
PAHARI (CHAI TOLI)
1- Centre:SHOBHA
House
11 1 12
8.33 Critical
Area: BHIKHANA
PAHARI (CHAI TOLI)-
Centre:KEERAN
House
9 5 14
35.71 Critical
Area: BHIKHANA
PAHARI (CHAI TOLI)-
Centre:MANORMA
DEVI PASWAN
House
10 9 19
47.37 Critical
Area: BHIKHANA
PAHARI (CHAI TOLI)-
Centre:SANGITA
House
12 18 30
60 Significant

9. WHAT IS PAR (PORTFOLIO AT RISK)
 Increasing in Body Temperature indicated there is some
thing wrong in internal part of body which cum in reflection
of Temperature ( Fever). So as in MFI the PAR % is the
indicator of MFI asset quality ie portfolio in Risk.The
Formula of calculation
Par = Sum of Unpaid Principal Balance of all past due
Total Gross Outstanding Loan Portfolio
In The Best Case scenario it should
be <.5%
100

10. EFFECT OF PAR ( OVERDUE )
 Postponed and Low Income
 Slower Portfolio Rotation and Asset Productivity
 Lower Staff Morale
 Higher Cost of Fighting overdue
 Diminished Co’s Image
 Chain Reaction

11. REASON OF PAR ( OVERDUE )
 Client Based Activities
 Willful Default
 Deviation in credit administration process
 Involvement of Ring leaders
 Forced loan
 Loan For Non Productive Purpose
 Adverse Client Selection
 Insufficient investment
 Husband wife Problem
 Migration of Client
 Seasonality of Business or Low income( gestation Period)
o Organizational Based
 Poor Product Design/ Bundle of loan
 Delay in Loan Processing
 Lack of Proper Loan Monitoring and Follow up by Field Staff
 Lack of Effective MIS System
 Zero Acton Taken By Organization

12. HANDLING WITH DELINQUENCIES
 Account Review( Diagnosis of Account)
 Categorization of loan account PAR Reason
* MIS Issue * Migration of Client *Pipeline Cases *Ring Leader Effect * Staff
Fraud * Wrong sale
 The categorization of loan account from poorest to most collective
*Not Possible, * Little Possibility * Possibility
 Strategy Formation
 PAR account Action Team and Campaign
 Special Incentive Scheme and Appraisal on performance , Removal of Poor
performer Crec, weed out approach of poor Client in L2 Loan , Fire on
Fraudulent staff, Legal action approach
 Always Action Approach

13. THANK YOU
 Happy Collection
 Prepared by
 Om Shankar Dubey
