This paper is a collection of three articles that demonstrate that management inputs can resolve difficult non-repayment situations in microfinance institutions.
1. Calmeadow, a Canadian non-profit organization specializing in microfinance, intervened when The Get Ahead Foundation of South Africa started facing repayment problems.
* Calmeadow researched the problems and found that there was poor client service, unmet loan needs and weak training in group methodology.
* It formed a 'Change Management Team' and made changes in delivery and products.
* It trained the staff and gave operational freedom and incentives, ensuring group testing.
* The overall result was dramatic improvements in financial ratios, quality and client coverage.
2. The Rural Finance Facility serves 8,000 South Africans with micro loans faced problems with fraud.
* Due to the management pressure, they doubled the coverage every six months; one of the consequences was poor staff training.
* The repayment rates fell because of inefficient checking.
* Legal recourse revealed that loan officers were misappropriating receipts and the resultant action helped put better systems in place.
3. From inception, Ahon Sa Hirap, the Philippines grew very fast but due to lack of funds, the initiative lost focus. They had a repayment crisis, but rose above it.
* Repayment became a problem and credit discipline was shattered.
* Analysis revealed that the management was not serious.
* A review of CASHPOR and Grameen Trust analyzed the situation and recommended that a start should be made with the worst group.
* The organizational structure was streamlined.
* As a result, at the end of 1995, they had 98.98 percent repayment rate.
