Most savings and loans companies have said they have been keen on monitoring the performance of loans as part of efforts to protect their businesses in a challenging economic environment.

The Chief Executive Officer of Opportunity International Savings and Loans Company, Ernest Yerekuu, told Joy Business that tighter supervision of loan books has become necessary, especially after the period of high inflation and elevated interest rates that put pressure on borrowers.

“We have been keen on monitoring loan performance. It is important for us to make sure that the facilities we give out continue to perform well so we can sustain the business,” he said in an interview.

Mr. Yerekuu explained that Opportunity International S&L has strengthened its credit management systems, including closer engagement with customers, early warning mechanisms and more active follow-ups on repayments.

According to him, the company now pays particular attention to sectors that are more vulnerable to economic shocks, such as small and medium-sized enterprises, which make up a large portion of its loan portfolio.

He noted that the approach is not only about enforcing repayments but also supporting customers who may be facing temporary cash flow challenges.

“When we see early signs of stress, we engage the customer to understand the situation and, where possible, restructure the facility to keep it performing,” he added.

Mr. Yerekuu said the recent easing of inflation and gradual decline in interest rates should improve the operating environment for businesses and help strengthen loan repayment going forward.

Opportunity International Savings and Loans remains focused on responsible lending, with the aim of growing its loan book while maintaining asset quality and financial stability.