The Impact of Credit Scoring on Loan Repayment

One of the most important activities every company is credit management. Credit management is the process to ensure that customers will pay for the products delivered or the services rendered. Credit management is of vital importance to your cash flow: you can be profitable but if you lack the cash to continue your business you will either be bankrupt or taken-over by someone who knows how to deal with cash. If your credit management system is properly organized this will contribute to a better assessment of your credit risk as well as improved collection debts. As a result company’s returns and operating resources will also increase.The emphasis of this study is to understand the impact of credit scoring on loan repayment of such a microfinance institution i.e. ESAF Micro Finance and Investments (P) Ltd.