Early Intervention in Loan Management
Early intervention in loan management can boost retention, according to financial empowerment platform Zavo.
IBS Intelligence, a Financial Technology research firm, notes that despite rapid credit growth in India, many lenders rely on recovery-driven systems, recouping only 15-30% of dues.
Timely borrower engagement could prevent up to 85% of loan defaults, while saving costs, strengthening borrower relationships, and improving retention.
Zavo's analysis of 2.2 lakh EMI payers across India reveals a critical gap in the country's loan management approach, where payment delays are often misinterpreted as deliberate defiance rather than temporary financial distress.
Author's summary: Early loan management intervention can prevent defaults.