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Institute of micro-finance and cooperative development.

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Two Comprehensive Trainings on Delinquency Control and Customer Relationship Management

In a strategic effort to address the rising concern of delinquency and enhance customer relationships, Centre for Self -help Development with Kisan Bahuudeshiya Sahakari Sanstha Ltd. and Udaydev Bahuudeshiya Sahakari Sanstha Ltd. organized two customized trainings for their field staff in November 2024. The training aimed at equipping the microfinance/cooperatives' field staff with the necessary tools and knowledge to manage delinquency effectively and strengthen their relationships with customer-members, a key aspect in reducing loan defaults and fostering long-term financial stability.

The Kisan Bahuudeshiya Sahakari Sanstha Ltd. held the training from Mangsir 8-9 in Lamkichuha, Kailali, for 38 field staffs, while the Udaydev Bahuudeshiya Sahakari Sanstha Ltd held the training from Mangsir 11-12 in Mahendranagar, Kanchanpur, for 23 field staffs.
These sessions were facilitated by experts from the Centre for Self-help Development (CSD), with Director Mr. Satish Shrestha and Senior Officer Ms. Renu Prajapatiz additionally, Mr. Chandra Bahadur Thapa, Cluster Head, and Mr. Rajendra Kumar Shrestha, Branch Manager of Swabalamban Laghubitta Bittiya Sanstha Ltd., joined as regional facilitators to offer their insights and experience.
The training covered a wide range of topics that are critical for managing delinquency and maintaining strong customer relationships. One of the key areas of focus was Delinquency Control in Microfinance/Cooperatives, where the participants were introduced to the concept of delinquency and its impact on the financial health of the organization. The facilitators discussed the causes of delinquent loans, such as poor loan management, lack of communication, or members' financial instability, and emphasized the importance of early identification and intervention to mitigate potential risks.
Participants were also educated on the principles and concepts of delinquency control, learning the procedures for identifying delinquency within their portfolios and the subsequent actions required to recover or write off these loans. The session also highlighted the cost of delinquency, underlining the strain that unpaid debts put on the organization’s resources and its overall financial sustainability. The facilitators made it clear that managing delinquency is not only about recovering funds but also about protecting the organization’s reputation and maintaining trust with its members.

Another important aspect of the training was customer relationship management. The program emphasized how to build strong, positive relationships with customer-members to increase their loyalty and reduce the likelihood of defaults. Participants were taught various strategies to engage members, including regular communication, understanding their financial challenges, and offering flexible loan terms when necessary. The goal was to create a collaborative environment where customers feel supported and motivated to repay their loans.
The training also provided practical guidance on steps and procedures for controlling delinquency. Field staffs were trained in identifying early warning signs of potential delinquency, such as delayed payments or frequent requests for loan restructuring. They learned best practices for communicating with members who are struggling with repayments and how to implement solutions like payment rescheduling or financial counseling. The training stressed that a proactive approach is crucial for preventing loans from becoming delinquent in the first place.


The closing ceremony of the training sessions, attended by organization heads from both Kisan Bahuudeshiya Sahakari Sanstha Ltd. and Udaydev Bahuudeshiya Sahakari Sanstha Ltd., emphasized the importance of the knowledge and skills gained during the program. They also reinforced the need to apply the training in day-to-day activities to reduce delinquent loans and foster long-term, productive relationships with customer-members.
The training initiative is part of a broader strategy by CSD with Kisan Bahuudeshiya Sahakari Sanstha Ltd. and Udaydev Bahuudeshiya Sahakari Sanstha Ltd. to enhance financial management, reduce delinquency, and ensure the sustainability of their operations. By investing in the professional development of their field staffs, the cooperatives aim to build a stronger foundation for their work, improve service delivery to members, and ultimately contribute to the growth of the microfinance/cooperative sector in Nepal.

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