Non-performing loans are one of the biggest risks for microfinance institutions. Once arrears begin to accumulate, they quickly become difficult and costly to recover. Research has consistently shown that proactive credit monitoring is essential to keeping portfolio quality under control.
But what does proactive really mean in practice?
At Juakali, we believe it means starting early, tracking consistently, and acting before a loan becomes a problem. That’s why we’ve designed our loan monitoring and debt recovery module to support institutions from the moment a loan is disbursed to the point it is repaid, renewed, or escalated.
Let’s walk through what that looks like across the loan lifecycle.
The moment a loan is disbursed, Juakali kicks off automated monitoring workflows. The system schedules loan usage verifications and regular performance tracking without any manual configuration.
Loan Usage Verification
Officers can verify that funds are being used as intended. This helps mitigate early misuse, especially for business loans where intended use is key to repayment capacity.
Monitoring Activities
From the start, Juakali tracks loan age, repayment behavior, and any deviations from expected patterns. These are automatically surfaced to supervisors.
SMS Reminders
Automated SMS messages remind clients of upcoming payments or required actions, reducing the likelihood of missed deadlines due to forgetfulness or confusion.
Juakali doesn’t just log the data — it makes sure someone sees it. The system assigns follow-ups and flags issues for supervisory review. If a repayment is late or a usage verification fails, the right person is notified.
With real-time oversight, potential issues are identified early. That means faster escalation and fewer surprises.
When a loan approaches its due date, the institution needs to act based on the client’s situation. Juakali enables two main paths:
Recovery Workflow
If the client shows early signs of risk or has entered arrears, a customized recovery workflow kicks in. This might include:
Renewal Workflow
For eligible clients, Juakali automatically triggers a renewal sequence. The system pre-checks eligibility, assigns tasks, and enables same-day renewal — often before the current loan even expires.
Even after a loan enters recovery, Juakali continues to track actions and ensure progress. Every step is documented and accessible to supervisors. Collections are no longer ad hoc; they follow a structured, configurable workflow.
Managing credit risk is no longer about reacting when things go wrong. With Juakali, institutions build structured, automated responses that:
The best part? This all happens within the same platform. No switching between spreadsheets, messaging apps, and paper forms.
Book a demo or explore our loan origination case studies.
