Displaying items by tag: financial institution
Loan management software is a cloud based end to end lending application used to improve the quality, turnaround time and service for end-customers. It enables banks to improve the agility, transparency and efficiency of their lending solutions whereas, Loan management system means an innovative, turn-key, end-to-end securities-based lending platform that connects lenders seeking high-quality, collateralized loans with borrowers requiring convenient access to credit.
- Loan Management
- SACCOS Management System
- financial institution
- Adding Value
- Ushirika Lab
The increase of non-performing loans (NPL) is one of the critical challenges that banks and financial institutions face nowadays. The benchmark of non-performing loans for bank industry is set to 5 per cent but in the third quarter of the year 2017, unaudited accounts for 19 banks and financial institutions indicated that NPLs ranged between 4 per cent and 51 per cent which is very high from the benchmark. Higher per cent of NPL will mean lower in collecting of repayments, no return of expected interests and even the borrowed principal. This reason could lead to institution bankruptcy.
One of the strategies that BOT recommended to banks and financial institution on reducing NPLs is to establish NPLs policies, some of them are arrears management policy, debt recovery policy, collateral management, valuation and reporting policy and early warning policy. Also, some of the banks have started to provide a group loan on their way of reducing NPLs as group are easy to make follow up.
If you are one among the very determined financial services providers and still facing a critical problem that many providers face then you need to follow me closely