The Key Metric Many Lenders Ignore in Loan Collections! - CloudBankin – A digital loan software by Habile Technologies

Actually, most of the lenders are not tracking this data.

Lenders will have a common EMI date for their borrowers.

Let’s take an example: the 10th of every month for 1,000 borrowers.

Every month:

1) Until the 11th night (T+1) – 75% should be collected. Otherwise, it’s a red flag.

2) Until the 20th night (T+10) – 90% should be collected.

3) Until the 30th night (T+20) – 97-98% should be collected.

If you have this process, most of the issues are sorted.

Whether you collect the money or not, you should MEASURE this data on a monthly basis.

Because,

If you can’t MEASURE it, you can’t MANAGE it.

We all know that lenders will track like 30 dpd, 60 dpd, and 90 dpd. DPD – days pending due.

Since lending is all about the collections business, please track it before 30 DPD.

What are your thoughts on this?

#emi #dpd #manispeaksmoney

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