1. What is Delinquency Management?

It provides information on debt collection strategies and principles. A debt becomes

delinquent when payment is not made by the due date or the end of the assigned time as
established in a loan or repayment agreement, in the case of a debt being paid in
installments. in the case of administrative debts such as fines, fees, penalties, and
overpayments. A debt becomes delinquent if the payment is not made by the due date
specified in the initial billing notice.

2. How and why do we manage delinquency?

There are six essential elements to managing delinquency.

 The credit service must be valued by clients - Clients repay loans primarily in
order to be eligible for larger, follow-up loans. This incentive is ineffective if the
client does not appreciate the loan service. As a result, the loan product must meet
the client's demands, the distribution method must be convenient, and the client
must perceive that the MFI values and cares about them.


3. What are the main factors affecting Delinquency?

4. What are the causes of loan delinquency?

5. What does delinquency mean in microfinance institution