Credit Risk Management and Practices of Creditors and Borrowers in Collection Policy: A Comparative Analysis

The study examines the global economic challenges in 2024 and focuses on the recovery of the Philippine economy, stressing the importance of credit risk management and practices in communities supported by the University of Bohol. It shows that microfinance institutions (MFIs) can help improve financial health by offering better credit management and practices in collection policy, especially for borrowers with limited financial knowledge and inconsistent incomes. The results show that both borrowers and creditors are satisfied with the collection policies, but improvements are needed in payment options, debt recovery, and financial education. It is recommended to simplify payment processes, improve collections, offer ongoing training, and gather feedback to align policies. These changes will help strengthen credit risk management and practices to improve the community’s financial stability.