Midland Microfin Ltd. is a leading microfinance institution that focuses on promoting financial and social empowerment among women. However, during the pandemic, due to the major impact on the livelihood of low-income earner groups, the Company faced Difficulties in seamlessly collecting repayments from their borrowers. The Company was not able to gauge whether the borrowers were reluctant to clear EMI dues or was it sales officers were not actively engaged in field collections. Recognizing the urgent need to address this confusion, Midland Microfin sought a solution to upgrade their collection efficiency by adopting Credility’s goCollect App Solution and see if they can support their borrowers during these difficult times.
Identifying the Problem
Midland Microfin leveraged the tracking and data analytics capabilities of goCollect, a robust debt collection and NPA management software solution. Through the use of goCollect'sinsightful dashboard and reports, the top management of the company discovered that some appointed sales officers were not actively pursuing collections which led to irregular Promise to Pay (PTP) Management. Furthermore, borrowers were making partial payments, indicating their positive intentions but limited capacity due to the pandemic and associated lockdowns.
Solution and The Decision to Support Borrowers
Upon realizing the problem, the Company with the help of goCollect App not only regularized the PTP’s but also decided to provide additional financial assistance and support to their existing borrowers who were facing challenges in sustaining their business and livelihood.
“Our decision aimed to enable borrowers to repay a certain portion of their debt while receiving additional monetary support to restart their businesses. By extending this support, we at Midland Microfin were able to strengthen our relationship with borrowers, foster trust, and ensure their long-term financial stability.”
Amitesh Kumar, COO and CFO, Midland Microfin Pvt Ltd
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