more information, less risk™
| Question: - |
Considering that in Kyrgyzstan micro loans are often made in amounts up to $10,000, as a micro lender wouldn't you pay less than $1 to protect your portfolio against default? |
| Fact: - |
There is a frequent perception among MFIs that they know their clients' histories, and therefore do not need credit reports. In fact, global experience demonstrates that up to 40% of clients hold loans from more than one source. |
Our member MFIs benefit from:
- minimization of risk in lending to individuals and companies;
- an enhanced ability to set appropriate credit limits for customers;
- more efficient processing of loan applications;
- deterrence against problem clients and "serial borrowers" securing additional loans from other sources, which helps to secure repayment;
- via our optional "kolokol" monitoring service, automatic notification when a current loan holder attempts to receive or obtains credits from other sources; and
- due to the reduction in bad credits, the capacity to lend at competitive rates relative to non-member institutions; and
- ultimately, increased profitability
