Avoiding Over-indebtedness – New Campaign Smart Note

> Posted by Kelley Mesa

For many Smart Campaign endorsers, how to identify and develop processes to avoid client over-indebtedness prove to be major challenges. At Partner Microcredit Foundation in Bosnia and Herzegovina, the leadership and staff have developed a strategy for avoiding over-indebtedness by recognizing that a risk for the client is a risk for the institution.

To mitigate the risks of over-indebtedness, Partner performs rigorous credit analysis of its clients before issuing a loan and follows up with audits to verify proper staff behavior and discover why clients are not able to meet their obligations. Proactive measures like financial-literacy programs and client-loyalty efforts complement analysis and audits to create a robust system to avoid client over-indebtedness.
Read the complete Smart Note here >