What to Look for in a Cash Collection Software in India

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What to Look for in a Cash Collection Software in India

Cash collection software is becoming increasingly crucial for businesses in India. With so many options to choose from, it can take time to find the right cash collection software for your business. We’ve made a list of the most important things to look for in cash collection software in India so you can make an informed choice. By keeping an eye out for these features, you can ensure that the cash collection software you choose meets your needs and gives you the best value.

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User-friendly interface

 

When choosing cash collection software for your business, making sure the interface is simple and easy to understand is essential. It can be crucial when dealing with debt collection management. For your employees to be able to collect payments, they need to have access to a simple and easy-to-use tool. A user-friendly interface makes it easy for employees to enter data quickly and correctly, which cuts down on mistakes and speeds up the process. 

 It should also give helpful tips, alerts, and suggestions when information is entered so that the whole debt collection management process works well. Make sure you look at the software’s interface before making any decisions.

Advanced features

Debt collection management is an important part of any business and having the right software in place can make a big difference. When looking for cash collection software in India, it’s important to consider what features the system offers and how they will benefit your business. Here are some of the advanced features to look for when selecting cash collection software for your business:

 

  • Automated Reminders: A reliable cash collection software should have an automated reminder system that can send emails, SMS messages, or other notifications to remind customers of their payment due dates. This feature lets you stay on top of payments without manually tracking them.
  •  Scheduling: Scheduling features enable you to organize and automate your debt collection process. This feature allows you to set up recurring payments, schedule payment reminders, and create payment plans.
  • Reports: A good cash collection software should give you different reports that help you understand how your debt collection process works. Reports can include overdue payments, total collected payments, and average payment times.
  • Customizable Workflows: Customizable workflows let you make unique rules and processes for handling debt collection tasks for each customer. It ensures that every customer gets the same level of service and support from your business, no matter their situation.
  • Collection Management: A sound collection management system lets you keep track of all parts of the debt collection process, such as invoices, reminders, payments, and reports. You can also use the system to track how much money you have collected over time. It will help you figure out where your debt collection process needs improvement.

With these advanced features, cash collection software in India can assist your company in improving how it collects debts and gets the most money possible. Look for a solution with these features to get the most out of it and make your customers happier.

Integration capability

When looking for cash collection software in India, one of the most important things to look for is the ability to integrate. With an integrated solution, you should be able to sync your payment system with your accounting software and other external systems, such as CRM, customer data, and accounting. This way, you can ensure that all relevant data is easy to find and up-to-date, making data collection easier and more efficient. Integrated cash collection software makes it easy to match payments to invoices and track where payments stand. 

You will also be able to identify key trends in your collection data that could help you improve efficiency.

Security

To run a successful business in the banking industry, you need cash collection software that is reliable and safe. When choosing cash collection software, it’s essential to keep a few key things in mind to ensure your business runs smoothly and safely. Security is one of the most important features to look for when selecting cash collection software in India. To protect sensitive customer information and any cash you collect, you should add strong encryption and authentication to the software. Also, it should have features that make sure it follows local rules about debt collection management, such as the Payment Card Industry Data Security Standard (PCI DSS). If you choose software that meets all these requirements, you can be sure that your cash collection operations will continue to be safe and legal.

Pricing

Regarding cash collection software, pricing can be a major factor in deciding. But it’s important to consider more than just price when choosing cash collection software. It would help if you looked for features like debt collection management and automatic payment processing to get the most out of your software. Debt collection management lets you manage your receivables effectively and efficiently, and automated payment processing saves time and reduces the amount of data entry that needs to be done manually. Also, look for software that can help you track your accounts receivable with features like flexible payment options and analytics tools. These features will help you get the most out of your business, bring in more money, and keep things running smoothly.

Conclusion

Debt collection management can be complex, especially for businesses with a large customer base in India. To successfully get money from customers, you need to choose software that fits your needs and your budget. When choosing a cash collection software in India, look for the following important features: automated invoice creation, customer segmentation, customizable payment options, automated debt collection reminders, and analytics and reporting. With the right software and cash collection services from MIMOIQ, businesses can be sure that they can collect debts more quickly and correctly.

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Things to consider when choosing the right Cash Collection Software

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Things to consider when choosing the right Cash Collection Software

Selecting a cash collection management system can take time and effort. Whether you’re carrying the load alone or working with other departments, in either case, research, time, and action are needed.

However, a collection management system is essential to maintaining your AR collection, whether you are making your first purchase or switching from your current system. The exemplary system makes your employees more productive, reduces frustration and wasted time in the company, and shows your AR to a wider range of people. Your time spent finding answers will ultimately be worthwhile.

Most organizations use various software tools to keep their back and front offices working smoothly. Even if you already use customer relationship management (CRM) and enterprise resource planning (ERP), you may still need a tool to help you collect a debt.

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Why do you need cash collection automation software?

Every company’s account receivable (AR) department faces the difficult task of collecting unpaid debts. This laborious process, one of your company’s most crucial aspects, might seem intimidating. Some primary reasons why cash collection automation software having are the best investment for a business 

Consideration when choosing debt collection software -

MFIs, banks, and financial companies are now investing in debt collection software, making the process quite handy. So, when you are considering the collection software, there are a few things you need to consider-

Skills of users

It would help to consider how frequently and with what level of expertise your team will use the tool. People who need to learn more about cash collection may want a simple program with functions that are easy to understand, especially in an accounting office where cash collection is only one part of the job. It is vital to ensure that the tool’s team has the skill to run it appropriately. On the other hand, if you are choosing software for a debt collection agency, you may find that such streamlined systems need to be expanded, and you need to look for a more complete debt collection software package.

Has Complete Features

To make the software more user-friendly, it should have a full feature on its collector dashboard. The tracking and management processes are essential. Make sure you pick a system that communicates information in a way that is both helpful and understandable. A good software program for collecting cash can update and organize data from many different files quickly and easily, giving you quick access to critical information.

Doesn't Create Work Overload

Businesses are terrified of implementing new tools because of the workload involved. People often think implementing a new way of working will take a long time because everyone in the organization needs to learn how to use the new technology. Additionally, some people worry that their staff will feel overloaded by the wide variety of tools available and that the company will wind up underutilizing such a potent tool.

But as part of your plan, buying software to help you manage cash collection is easy and simple. With the help of products like ours, internal collection agents can immediately become more independent of IT departments.

Check the Price

Price is something you need to consider. A cheap bundle is only worth the money if the system is reliable. Instead, start by looking for software that will meet your demands, then evaluate the prices of these options. Then, before making a purchase, think twice about adding a luxury program with eye-catching features that you won’t use. You can find savings by shopping, so get in touch with several suppliers to compare pricing.

How can cash collection management help you?

Using cash collection management has wider benefits for the company. Once you install the right tool, things are more accessible than before. Some of the ways how cash collection management will help you are –

Completely Automated Revenue Process

Using an automated revenue recovery method, you can reduce the amount of money you lose from declined transactions and bad debt. Businesses frequently find it more challenging to collect past-due invoices as their customer base increases. Using the automated process, you can make the customers’ experience easy by accepting credit cards and other payment methods and setting up QuickPay landing sites.

Your team won’t have to wait in lengthy call lines during business hours or manually enter a link found on a letter. Customers seek a quick fix and have an underlying desire for action and control. When they can make a payment, they want to feel free to do so without having to endure lengthy procedures.

Centralizing Debt Collection

The degree to which cash collection software integrates and centralizes a collection strategy can significantly improve how things are done. In an organization, there are many distinct types of debt, which can make operations challenging. For instance, you might owe several consumers money to various departments or for services. It results in a complicated paper trail when applied to businesses with huge employees, including local customers who handle their sales and accounts.

You can make a more effective plan by putting all of these accounts in one place, which you can do with cash collection software. Having all your data in one location will allow you to establish centralized debt collection and make decision-making easier.

Mitigating Debt Collection Problem before arising

Debt collection software can use artificial intelligence and information about how people act to rate consumers and spot possible risks before an account goes into the collections cycle.

For example, the software can use digital marketing KPIs to find clients who have ignored or been slow to open emails and texts sent at the beginning of the customer journey. It means mistakes are possible, which could be a problem for people who want a certain strategy. Having this kind of insight in your arsenal makes it possible to personalize the customer journey based on a person’s circumstances.

You might even alter the channel and communication tone using the information provided. You do this by making a goodwill gesture, such as waiving payment due dates and contrasting the situation with the status quo by evaluating what your rivals would do in the same situation.

Identifying possible credit risks and problematic behaviors before they manifest allows you to leverage data and technology to your advantage and provide a rich, satisfying client experience. Financial hardship and busy lifestyles are commonplace in the modern world.

It is Adaptable

Being adaptive is a vital component of any cash collection software. It would help if you had software that could scale to meet the needs of your business. Invest in a tool that can test how well the different touchpoints in the collection’s journey work as you put them in place and make the necessary changes.

Adaptive cash collection software for businesses will not only compile data and quickly identify potential payment issues before they occur, but it will also function in a way that will minimize conflicts with no additional work on the user’s part.

Summing it up

Once you know the features, benefits, and methods of choosing cash collection automation software, it becomes easy to invest. MIMOIQ is the leading company that helps in cash collection using the right tool. The cash collection service by MIMOIQ safeguards your deposits and helps to maximize the cash flow. Connect now and lower your risk of cash collection fraud.

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How can Cash Collection Automation Software keep you out of Trouble?

Automate Cash Collection Process for your Business

How can Cash Collection Automation Software keep you out of Trouble?

Every organization has a cash collection team that controls incoming and outgoing cash daily and other accounting work. The cash collection process cycle starts as soon as a customer orders. The collection team must update the daily transaction accounting database while maintaining the security and privacy of financial records. Manually doing this process will take more time and be prone to error.

Understanding the challenges in the cash collection process and addressing them with optimal solutions is essential. Many organizations seek help from technology, as technology saves business from many challenges in the modern market. Cash collection software can save the collection teams from various problems.

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Challenges faced by cash collection teams

Here’s a list of common problems that a cash collection team faces during the cash collection process.

Poor cash visibility

Organizations require high cash visibility to make decisions. An efficient collection process can result in high visibility. Also, data distributed across ERPs, TMS, sales order systems, and bank portals limits visibility. Low cash flow visibility can also reduce the accuracy of the projection, making it difficult for companies to make effective decisions.

Lack of security

Companies that perform cash collection processes manually are at more risk of cyber threats. Since manual systems lack data encryption that prevents hackers from getting into your system, you should protect the sensitive data your customer shares during a transaction, so your customer, business partners, and merchants maintain trust in your company.

Slow speed

Manually processing the collection is time-consuming. If you can speed up this workflow, you will avoid hitting delays or failing to capitalize on early payment discounts. Sometimes, companies need help keeping up with the payment due dates and loan collections. For instance, banks and money lenders face the problem of bad debt due to the slow speed of the cash collection process.

Higher borrowing costs

When a company gets money late from their customer, they must pay a higher interest rate to banks for borrowing their money. It can reduce the profit of a company significantly.

Lack of data analytics

Improper use of idle cash and increased cash buffers can result in a loss of opportunities in value creation. The cash collection team can only access cash for investment when they know how much money they have. Hence, the collection team must track the money flow to check for potential errors and maintain visibility during the transaction.

How does Cash Collection Automation Software help in the cash collection process?

Cash collection automation software can address all the problems that may arise during a cash collection process. Automation software offers the following benefits to an organization:

It enhances control over cash and working capital

Knowing your cash position and improving the cash collection process improves working capital. With the help of automation software, you can manage your working capital more effectively, which helps you get insight into what you need to make strategic investment decisions, like hiring new employees, purchasing capital equipment, and expanding your workplace. Improving your invoice collection process helps you invest in the right place to help you grow your business, and your organization still has more cash on hand after investment.

It shortens the sales to the payment cycle.

Generally, manufacturers or distributors need to pay for the cost of labor and inventory when producing or distributing a good or service. When a service organization invests in the raw material and resources to provide the service, they need to collect cash for their service and product as soon as possible. Automating software means you don’t have to worry about creating sales orders and invoices. It also sends the invoice to respective customers automatically. It also allows your customer to pay you via various modes, including credit cards, ACH, and more.

It lower bad debt risk

Many banks suffer losses from bad debts because the organization knows the customer will not pay them. It happens because the cash collection team cannot collect cash at regular intervals. Several other reasons also lead to delays in Loan collections. Collecting software can help the collection team to stick with a definite schedule of collection tasks and generate daily tasks for employees to keep up with workflow. It helps collect debt more quickly and reduces the risk of bad debt.

It improves your cash position

Knowing how many bills you must pay helps you understand your cash position. Pay your due bills to avoid owing more money than you are taking in. It would help if you focused on utilizing the best cash collection practice, reminding your customer to pay, providing customers with easy ways to pay you, and identifying invoices earlier in the process. Some automation software comes with a statistical cash forecast based on your customers’ payment history. It helps you know whom and where to receive cash soon.

It improves customer communication

Communication with your customer is an important part of the business. Cash collection automation software makes it easier for you to communicate with your customers. It allows you to review the necessary information about the customer, like account information. It also helps you create emails, attach invoices, log phone calls, and create mail merge documents. Automation software stores every communication with customers for future review and analysis.

It makes the cash collection process efficient

The cash collection process is time-consuming and inefficient because it is performed manually. The account managing team has to call each customer required to pay their company. Other factors also affect how much time you need to resolve issues with your payments. Companies using automated cash collection software can organize and automate mundane tasks. It helps reduce time spent on managing disputes, prioritizing, and preparing fo4 calls. It provides more time for your team to solve customers’ payment issues.

It minimizes administration costs

Automation software is designed to automate every activity that shouldn’t require human intervention. In the banking industry, organizations have to generate task lists for employees which requires a workforce. However, automation software can save banks from paying high administration costs by shrinking the size of the cash collection department. The collection software automates most of the process, which increases efficiency and minimizes the company’s administrative costs.

It improves customer service and satisfaction.

Sending an invoice early to your customer helps them pay you on time. However, it is common for companies to face problems with their customer invoice, such as missing or incorrect purchase orders. Resolving the issue with your customer invoice as soon as possible help provide your customers satisfaction. An automated cash collection software can automate invoice delivery to customers and alert you to problems with invoices and offer practical solutions. It helps you serve your customer better with fast and improved service.

In Conclusion

A smooth cash flow is essential for any organization. You must get paid on time to avoid a situation where you owe more than you are taking it. Slow speed, human error, lack of data analytics, and inefficient payment methods are common problems that a cash collection team face. Fortunately, automation software is a perfect solution that can address all the issues of cash collection and save you from getting into trouble.

MIMOIQ offers excellent cash collection solutions and helps organizations collect money faster, reduce bad debt write-offs, increase the economy, and maintain good customer relationships. You can choose from multiple cash collection models that suit your business needs.

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How to Automate the Cash Collection process?

Automate Cash Collection Process for your Business

How to Automate the Cash Collection process?

For any organization, the collection process is incredibly mundane. The team that supervises this process has to spend an hour, and this process also makes the team unmotivated to complete their work each day.

Cash collection is an essential part of any organization. The cash collection management team has to send endless reminders via email, phone calls, and more to clients who forget to pay you. Using technology, you can improve your business’s overall collections experience while boosting your team’s morale.

Here, you can learn how automated cash collection improves cash flow, minimizes invoice query times, and reduces debtor days.

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What is the cash collection process?

A cash collection Process is whereby an organization recovers cash or due payment from other businesses or customers for whom it has previously issued an invoice. The primary function of cash collection is to receive invoices paid on their due date.

The process also manages new payment settlements or credit terms. New payment settlements are essential as it saves companies from doubtful and bad debts. Moreover, a company with massive volumes of payments means more manual work, and it can result in a time-consuming and arduous process. It affects the overall productivity of the company

Why should you automate the cash collection process?

Many companies are implementing an order to cash Automation Software in their organization to speed up their cash collection process. With an automated cash collection process, you can receive payment faster from your customer. Your cash collection team needs to be faster to remind customers of the importance of timely payments, and their pending payments will pile up. The automation software has automated reminders that remind your customers about their past due. It uses an automated email sequence that reminds all the customers at once.

Cash flow problems make it difficult for businesses to pay their staff, supplies, and creditors. It hurts your creditworthiness, causing more problems in your business. An automated cash collection makes the accounting process less troublesome and reduces the chance of any error. With less time, your team can focus on maintaining the organization’s financial health.

Automated software also allows your team to access documents from anywhere. The software uses cloud-based platforms that enable access to accounting data on various devices from any secure location. It helps your business keep moving forward even in case of any disturbance.

If you think that your data is unreliable, you can’t make the right decision and lose your clients and customers. To provide accurate products and services, you should focus on accurate financial reporting. With the automated cash collection process, you can remove the error likely to happen because of

humans. It helps in making data more accurate. It also enables you to analyze the data, spot new trends, identify challenges, and instantly find solutions.

Ways to automate the cash collection process with automation software

Generally, you can automate your organization’s cash collection process with the help of automation software. However, many things, such as the software’s features, your business requirement, and more, help determine whether the software works for your business or not. Hence, you will need some tips while automating this process to have effective solutions. Here’s a list of ways that allow you to automate your cash collection process, including:

Use AI-based OCR Engines

Your cash handling team should use AI-based OCR engines to reduce the dependency on bank lockbox key-in fees by offering accurate capture of check stub information. It also reduces or eliminates the reliance on in-house resources. When looking for automation software services, ensure that the provider offers this feature.

Identification and Application of Reason Codes for Short-Payment

Sometimes, customers make short payments but need to share the reason code information. It causes me to generate invoices for the same item twice. Choose a software that offers a feature to identify short payments and map the customer-provided reason code to the internal reason code. It helps reduce the error on an invoice.

The capture of Remittances from Various Sources

Automated Cash collection requires software that captures remittance details from various sources, such as emails and attachments, web portals, EDIs, and more. Customers send remittances in multiple formats, including PDFs, JPED, XML, HTML, CSV, PNG, Excel, and more

Automatic Linking of Payments and Remittance for Online Transaction

People send remittances through EDIs, emails, and web portals. It makes it difficult for a team to extract these remittances and map them to the incoming payments with proper payment data, invoice numbers, and more. To avoid exceptions, you should implement automation to link payment and remittance files for online transactions.

Open Account Receivable Invoice Matching and Exception Handling

When a person works manually for an accounting process, the risk of error is high. The team may find these issues, such as incorrect invoice numbers or missing remittance information. 

It can cause delays in cash posting, so you should prevent these problems with the help of Automation Software. Use AI-based software that automates matching invoices to payments, even in exceptions.

Post Cash Directly to Your ERP

You should ensure that your software features output file generation that is compatible with any ERP system. Your software should be able to create files in various formats, including EDI, BAI, and other formats. Having software that works well with your ERP system helps reduce the manual effort to recognize the file and streamline the cash posting to the ERP system.

Study Performance Metrics and Report for Better Insight

Monitoring the cash collection process metrics helps the organization to analyze the performance of the cash collection process. It will help if you implement software that displays the day-to-day activities and analyzes KPIs. It helps organizations to make further decisions based on accurate information.

Use AI and Machine Learning

AI and machine learning algorithms help solve any challenge while using automation software. The software featuring machine learning allows it to learn about your organization independently. It saves time manually putting information about the customer’s invoice number and other data.

Identify and handle Complex Parent-Child Relationships.

Parent-child relationships make mapping payments of customers challenging. Sometimes, an organization posts sales invoices on a parent account level but deducts at the child level. You should get software that can identify and map parent-child relationships in the customer to eliminate the exception during cash posting.

Auto-match Customer' Open Invoices with Incoming Payments

The cash collection software should be able to auto-match the payments from their customer to their open invoices. This process, also known as customer identification, helps the AR team to verify the account numbers when customers make payments.

The Final Word

Many ways are available for your business to automate its Cash Collection Process. When you look for a solution, make sure that it can make your team more efficient and offers your consumers a smooth transaction experience.

With MIMOIQ, you can get trained professionals to handle the entire collection. They also help reduce the risk of fraud, theft, and cash mismanagement. You can choose multiple models, such as doorstep pickup, cash collection point, etc., that meet your business needs.

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How Does Cash Collection Work for Microfinance Institutions (MFI)?

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How Does Cash Collection Work for Microfinance Institutions (MFI)?

Post-pandemic banks and non-bank lenders active in microfinance have begun implementing hybrid collection strategies from borrowers. To minimize process disturbances, they are attempting to combine physical and digital collection modalities. As a result, cash collections work differently for MFIs depending on the type of loan undertaken.

Due to the comfort level of the primary borrower base in making cash payments, repayments in the microfinance sector have historically been made in group meetings.

Microfinance has played a significant role in India’s financial status. By offering microcredit, MFIs (Microfinance Institutions) significantly contribute to promoting inclusive growth for low-and middle-income populations without access to formal finance.

Loan collection needs to be considered for any financial institution. They must work per the guidelines, ensuring the debtor faces no problems.

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What are microfinance and the types of institutions?

Financial firms, and microfinance institutions (MFIs), offer small loans to those without access to banking services. The term “small loans” has different meanings in different nations. All loans in India that are less than Rs. 1 lakh can be categorized as microloans. There are three different types of microfinance institutions offering microfinance:

What are the goals of microfinance institutions?

In recent years, microfinance institutions have grown in popularity and are increasingly viewed as useful tools for reducing poverty. Most MFIs have excellent track records and are profitable since they have effective loan repayment methods, while others are pretty self-sufficient. The following are the main objectives of microfinance institutions:

Let us check the different ways of improving cash collections in microfinance institutions:

Microcredit

One of the most effective methods for reducing poverty is microfinance, which offers tiny financial products. It also includes helping the impoverished in rural, semi-urban, and metropolitan areas to aid in their upliftment and improve their standard of living. Microcredit has been characterized as the provision of thrift, credit, and other financial services and goods in a minimal quantity. The RBI’s NBFC-MFI license is what allows MFIs to operate in India.

Collections

Individual and group loans with set repayment terms are frequently available from microfinance institutions. Depending on the plan and the institutions, the loan repayments could be weekly, monthly, or biweekly. A compelling collection strategy keeps MFIs’ goodwill with the borrowers while enabling them to convert receivables into liquid assets as rapidly as possible. In addition, microfinance institutions put down different cash collection options, helping debtors to repay easily

Digital Penetration

Market experts believe that the best way to help MFIs with collections is by teaching borrowers about making on-time payments and giving them the option to do it digitally. Thanks to the widespread use of smartphones and the reach of the mobile internet in India, every user can easily access digital apps. There are multiple apps available for loan repayment and receiving.

One could compare the repayment of the loan to paying any utility bill (such as an electricity bill or a mobile recharge bill), most of which have already gone digital thanks to India’s interoperable bill payment network. In addition, MFIs can help users know and learn which app is the best.

Loan Collection Using Apps

Using apps for loan collection is the best way. Some schemes are run by NPCI, following the guidelines set by the financial authorities. It connects all payment service providers to utility providers for easy payment options. Service Providers like MIMOIQ also provide the best platform that helps microfinance institutes with cash collection. For instance, MIMOIQ includes all the utility bill payment services available through online “agents” like Google Pay, BHIM UPI, and Amazon Pay.

Loan repayments by these microfinance institutions can be simplified using UPI payment apps such as PhonePe and Google Pay. The client pays the outstanding loan balance by displaying their customer identification number. The process acts as a self-serve model, and to complete the transaction, the borrower would need to be provided with contextual knowledge via SMS and WhatsApp.

Using Trusted Cash Collection Service

Along with UPI, companies can also use reliable cash collection services. As mentioned, MIMOIQ is the leading cash collection service. You may increase your cash flow by using MIMO Cash Collection Service to handle your cash management requirements and protect your cash deposits. MIMO provides a user-friendly solution that meets all your cash-related needs, from cash deposition to e-money transfer. In addition, the risk of improper cash handling and stealing is reduced because qualified specialists manage the whole collection and deposit procedure.

Financial Literacy on Repayments

Regarding cash collections or repayments, it is essential to have literacy on repayments. It is the responsibility of MFIs to inform borrowers of the risks of postponing payments through a variety of channels and to encourage them to make on-time payments whenever possible.

Along with this information, it is essential to provide simple DIY payment instructions for using UPI apps to make loan payments. Most households utilize the three most popular communication channels: SMS, WhatsApp, and IVR.

Different Groups by Microfinance Institutions for Loan Collections

The Joint Liability Group (JLG)

This informal club, typically of 4–10 people, looks for loans with mutual guarantees. Usually, the loans are used for farming or closely related activities. This group of borrowers includes tenants, farmers, and rural employees. In this JLG, everyone shares equal responsibility for prompt debt payback.

Self-Help Centers (SHG)

This self-help group consists of people from comparable socioeconomic backgrounds. These small business owners band together for a brief time and establish a shared fund for their operational requirements. These organizations fall under the category of non-profits. In addition, the group handles the collection of debt. In this type of cooperative loan, collateral is not necessary.

Bank Grameen Model

Prof. Muhammad Yunus, a Nobel Prize winner, developed the Grameen Model in Bangladesh during the 1970s. In India, Regional Rural Banks (RRBs) were founded. The complete growth of the rural economy is the main goal of this system.

Rural Cooperatives

In India, rural cooperatives were created after the country gained freedom. Poor people’s resources were combined, and this fund was used to provide financial services. Although this system had intricate monitoring protocols, it exclusively benefited creditworthy customers in rural India.

Being Digitized with Professional Service

A lot of MFIs still maintain records on paper. Digitizing all data is the best way to overcome the problem of cash collections. MFIs should prioritize investing in data management systems so they can begin collecting data in the future rather than getting bogged down with digitizing outdated data. One should prioritize figuring out how to organize data to be valuable, effectively, and reliably collected online. The old data being digitized is a plus. MIMOIQ is the ideal platform MFIs can use for loan repayment.

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