Continuous Client Motivation is the Key to Good Repayment Rate

If people are in dire situations, break those situations into acceptable levels and lead them to places where they could see their vision clearly.

Isn’t that microfinance as a program is a marketing system of HOPE?

Now, we are entering at a point where the skills and capabilities of microfinance workers be put into a test.

Ensuring continuous client motivation is the hardest and most costly in the microfinance operations. Be aware of it.

In the past, motivation was considered as initial visit before the client joined the program. However, we need to go beyond that and consider motivation as an ongoing influence throughout the life of the client in the program.

But first, we need know on how we defined MOTIVATION. Motivation is an influence, either external or internal, either positive or negative, that moves us towards a desired goal. The goal, in this case, is payment of the credit in full and on time.

Good repayment rate, that is, payment of the credit in full and on time is achieved through a series of influences both positive and negative, and may it be, either coming from the program or institution (external) or coming from within the client (internal).

Each microfinance institution or organization that is engage in, a way, microfinance must develop its own policy on member motivation. There should also be installed monitoring system on how this motivation being applied.

And, here is the time where Field Officers can used their communications skills and other capabilities they have acquired during their trainings. Field Officers must be aware of their responsibility in the on-going aspect of motivation.

Outreach Turn-Over is a case of client motivation.

It can be easily asserted that one Field Officer has much better response and can maintain a higher repayment rate than some others. Some have a natural ability to motivate. Personality can be identified as a key to it. However, motivation and communication skills can be learned. The application of motivation, may it be positive or negative, depends in the identification of the problem.

How many times you’d think that a delinquent member should be punished?

Not all delinquent member should be punished. Majority of defaults are caused by faulty communications and poor motivation. Often, spoken words can unintentionally hurt the client. Hurt feelings and other similar problems sometimes are inflicted by fellow members and oftentimes by careless remarks by staff.

Indeed, leading your clients to places where they can see their vision, that is, coming out of poverty, is a walk through a hard and costly process of motivation.

Marketing of hope is motivation. Therefore, microfinance is a program of constant motivation.

Good luck…


photo credit: Solomon Islands via photopin (license)


7 thoughts on “Continuous Client Motivation is the Key to Good Repayment Rate”

  1. Florentino,

    Client motivation is definitely key to good repayment rates as a positive attitude often makes the difference between a successful business and failed venture.


    1. hi fehmeen,
      you prodded me to post and this is it ha ha…thanks for making me productive nowadays…i’ve been wandering on your site, and I was overwhelmed by the data you presented…go on, we still have a long journey ahead…

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