This note talks about the significance of loan portfolio audit as an essential feedback to the stakeholders in order to understand the risks in the MFI’s loan portfolio and the systems/procedures used to mitigate this risk. It explains in details the process for conducting loan portfolio audit which includes sample selection, verification of loan management processes and documentation to check for consistency and completeness, and looking at portfolio management policies, systems and procedures in relation to international best practices. The note also brings forth the issues arising out of a loan portfolio audit like non existence clients, mismatches in records, rescheduling and practices without management’s approval.
Download document
Related Documents
- Briefing Note 62 - Benefits of Loan Portfolio Audit
- E-Bulletin on Risk Management - March 2011
- Risk Management Booklet
- Briefing Note 72 - Internal Controls in Small/Medium Microfinance Institutions
- Briefing Note 59 - Institutionalising Risk Management for MFIs – Framework and Challenges
- Briefing Note 41 - Process Mapping in Practice
- Briefing Note 34 - Implementing Risk Management at MicroSave’s Partner Microfinance Institutions
Also Visit
 |  |
