MoPSLSW —E-Learning

Loan Approvals

Applications recommended for approval will be forwarded to the D/Director for approval
Based on findings from assessment, a decision to fund is reached.
The loan size, grace period and repayment terms are stipulated for each project.
The offer letter is sent to the client after approval of loan and it informs him/her about loan size, grace period, repayment and any other pre-disbursement conditions to be met

Once pre-disbursement conditions have been met (loan contract has been signed and
comparative quotations comparative quoatations is when not less than 3 quotations are taken for a single purchase
furnished,)

Controlling loan delinquency is a critical part of a productive lending programme
Monthly loan monitoring. Staff to indentify all accounts not paid on time to allow immediate action to be taken
If payments are late, members should be contacted immediately by mail, telephone or personal visit. The sooner the member is contacted, the more likely the chances of receiving payment
Staff should maintain continuing contact with borrower until payments are current

Officers at the district and Head office should have accurate record keeping
Delinquent loan accounts should be clearly marked for easy indentification and review
A collection file should be opened for each delinquent client. This contains date of contact with borrower, repayment commitments made and results obtained
A reminder to be sent in event of default
Final letter of demand should be sent after reminders
If debtor does not settle obligations after final demand the department hands him/her over to Attorney General for legal action