CENTRE FOR SELF-HELP DEVELOPMENT

Institute of micro-finance and cooperative development.

Controlling and Mitigating Credit Risk in Microfinance

With the rapid expansion of microfinance sector in past few years in Nepal, the sector has been facing numerous problems and challenges due to deviations from the true essence and fundamentals of microfinance. In this context the Centre for Self- help Development (CSD) organized a three day training program on “Controlling and Mitigating Credit Risk in Microfinance” from February 13-15, 2020 in Kathmandu. The aim of the training program was to acquaint the participants with techniques of handling and mitigating the issues related to loan delinquency in microfinance and educate the changing scenario of microfinance at present context.

Prominent microfinance personalities like :Mr. Roop Bahadur Khadka, Mr. Sundar Pd. Shrestha, Mr. Govinda Bahadur Raut and legal expert Mr. Shyam Kumar Khatri facilitated and interacted with the participants in three day program, it is concluded that all the problems of loan delinquency arises with the negligence of staffs and from the period of client selection.

The training sessions highlighted major causes and effects of delinquency, importance and procedures of credit risk management, client relationship and maintaining credit discipline, financial analysis, portfolio quality management and monitoring and supervision. Further the training also covered process of legal remedies to tackle the problems faced in microfinance sector and lastest directives of NRB to be followed by microfinance institutions.

There were 24 participants from 11 MFI's namely: Manushi Laghubitta Bittiya Sanstha Ltd., Solve Laghubitta Bittiya Sanstha Ltd., Global IME Laghubitta Bittiya Sanstha Ltd., Upakar Laghubitta Bittiya Sanstha Ltd., Mahila Samudayik Laghubitta Bittiya Sanstha Ltd., Meromicrofinance Laghubitta Bittiya Sanstha Ltd., Nawa Prativa Bachhat Tatha Rin Sahakari Sanstha Ltd., Chhimek Laghubitta Bittiya Sanstha Ltd., Ganapati Microfinance Bittiya Sanstha Ltd., Swabalamban Laghubitta Bittiya Sanstha Ltd., Swarojgar Laghubitta Bittiya Sanstha Ltd.

News