Late and defaulted loans are the biggest threat to any microfinance institution. The good news is that most defaults are preventable with the right process and the right tools.

• Know your member. Keep complete records and a clear repayment history for every borrower before you lend again.
• Match repayments to cash flow. Set schedules that fit how your members actually earn, not a rigid calendar.
• Remind early and automatically. A simple reminder before the due date prevents most late payments.
• Act fast on arrears. Follow up the day a payment is missed, while the balance is still small.
• Use guarantors and group lending. Shared responsibility keeps repayment rates high.

Rejesho automates repayment schedules, overdue and upcoming reminders, and portfolio reports so your team can focus on members instead of spreadsheets.