The conventional MFIs may go as far as threatening the defaulting party and the sale of assets to deal with defaults and settle the outstanding balance.

Question

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Conventional Microfinance Institutions (MFIs) often have strict measures in place for dealing with defaults, which can include legal actions, threats of asset seizure, or actual sale of the borrower's assets to recover the outstanding balance. These practices are part of their risk management and loan recovery strategies.

The Conventional MFIs May Go as Far as Threatening the Defaulting