By the time a loan is classified as an NPA, recovery is slow and expensive. The societies with the healthiest books act much earlier — at the first missed EMI.
Track Portfolio at Risk, not just NPAs
Portfolio at Risk (PAR) shows the share of your outstanding loan book where an instalment is overdue by more than a set number of days — PAR 1, PAR 30, PAR 90. Watching PAR 1 and PAR 30 weekly tells you where trouble is starting, branch by branch and agent by agent.
Five habits that reduce overdues
- Send an SMS or WhatsApp reminder two days before every EMI date
- Follow up the same day an EMI is missed — not at month-end
- Give field agents a daily list of dues with route and history
- Make paying easy: UPI, NACH auto-debit, counter or agent collection
- Review PAR by product and agent in every board meeting
Lend better at the start
Many overdues begin at sanction. Bureau checks, verified KYC and income signals before approval — and a clear approval matrix — prevent loans that were never likely to be repaid.
A reminder that costs a few paise is cheaper than a recovery visit.
#NPA#PAR#collections#microfinance
