Arrear Management Guidelines

A) First-Time Arrear Management:

When a member misses a repayment, field staff must act promptly.

They initially try to recover the repayment from other group/center members through peer pressure.

If this doesn’t work, the center leader should attempt to collect the repayment.

Field officers (FO) keep track of attendance and obtain signatures of present members.

FO informs the branch manager (BM) or cashier immediately.

BM or another available staff member rushes to the center to assist in recovery.

The FO ensures that no member leaves until the arrears are collected.

FO proceeds to attend other scheduled center meetings but does not collect cash from the problematic center.

After completing the day’s meetings, FO returns to the office, deposits DRS and cash from all centers, then goes to the problematic center.

If repayment is collected, FO updates loan records and counsels the clients on maintaining a good credit record.

If not, follow-up efforts continue until payment is collected, often led by the BM.

B) Overdue Follow-up:

Concerned FO conducts follow-up with arrear clients either during or immediately after the center meeting.

If not possible on the same day, it should be completed within the next two days.

FO reports the follow-up actions taken in a specified format.

BM reviews FO’s follow-up efforts and plans strategies based on this information.