Early Intervention in Loan Management
IBS Intelligence, a leading Financial Technology research and advisory firm, highlights the importance of early intervention in loan management to boost retention.
Despite rapid credit growth in India, many lenders rely on recovery-driven systems, recouping only 15-30% of dues, and missing opportunities to prevent defaults.
Timely borrower engagement could prevent up to 85% of loan defaults, while saving costs, strengthening borrower relationships, and improving retention.
Zavo, a financial empowerment platform, analyzed 2.2 lakh EMI payers across India, revealing a critical gap in the country's loan management approach, where payment delays are often misinterpreted as defiance rather than temporary financial distress.
Author's summary: Early loan management intervention can prevent defaults.
- IBS Intelligence: 30-year track record, 400+ technology vendors covered globally
- Zavo's analysis: 2.2 lakh EMI payers across India, 85% of loan defaults preventable