Nana Kwaku Agyei Yeboah, CEO, SLTF
Students Loan Trust Fund (SLTF) says it has increased loan collections by 57 percent from GH?17.5 million in 2017 to GH?27.4 million in 2018.
The SLTF reduced non-performing loans from 51 percent in 2017 to 38 percent as at December 31, 2018.
In an interview with BUSINESS GUIDE on Wednesday, SLTF Loan Recovery Manager, Justice Wiafe Sarkodie, said the 2018 loan recovery target was GH?30 million but GH?27.4 million was collected, representing 91 percent.
Mr. Sarkodie explained that the current improvement in the loan recovery was triggered by the training of staff, extensive and intensive calling and text messages to borrowers and gurantors to educate them on their obligation.
“We introduced mobile money and online platforms for borrwers to conviniently repay their loans without going to bank, capacity building training for relevant staff, as well as institution of recovery month of May each year set to create awareness to public through media compaigns,” he said.
“We are currently using data analytics and business intelligence to segment borrowers to provide the right treatment,” Sarkodie added.
He bemoaned previous setbacks as a result of difficulties in tracing borrowers in the informal sector and non-compliance of some employers to make monthly deduction to repay the trust fund.
The SLTF loan recovery target for 2019 is GH?35.6 million and expected to be retrieved from loan beneficiaries.
“We have developed systems for effective monitoring and evaluation to enhance policies and operations and improve systems to make it more robust to ensure efficiency of funds operations,” Mr Sarkodie said.
The Trust Fund is expected to review the existing plan, as well as improve loan repayment and recovery from borrowers to supplement funds available for disbursement.