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Case Study · Fintech · Microfinance

A Complete Loan Management System for ABM CORD Microcredit Limited

Kikavu Tech Solutions designed and built a digital platform that runs every operation of a microfinance institution — from member onboarding, savings, individual and group loans, mobile-money payments and SMS, to portfolio-quality (PAR) reporting and AI-assisted credit scoring.

ClientABM CORD Microcredit Ltd
IndustryMicrofinance
YearJuly 2025
LocationTanzania
100%
Swahili user interface
9
Loan products configured
PAR 1/30/90
Portfolio-at-risk reporting
24/7
Mobile-money collections
Overview

The Challenge & Our Solution

ABM CORD Microcredit Limited serves small entrepreneurs, traders and community groups. Before the system, most work was done in ledgers and Excel sheets, making loan tracking, collections and reporting slow and error-prone.

The Challenge

  • Member, savings and loan records were kept in paper ledgers and Excel.
  • No timely view of overdue loans (PAR) or portfolio risk.
  • Cash collections with no instant confirmation — risk of errors and fraud.
  • Inconsistent loan appraisal; collateral, guarantors and local-government letters were not tracked systematically.
  • Customer communication (repayment reminders) was manual.
  • Management and regulatory reports took days to prepare.

Our Solution

  • One web platform connecting members, savings, loans, payments and accounting.
  • An enforced loan workflow: appraisal, guarantors, collateral, documents and two-level (maker-checker) approval.
  • Mobile-money collections and SMS via Beem Africa — transactions confirmed automatically.
  • PAR reports, BoT-style loan classification and loan-loss provisioning.
  • AI credit scoring to support the loan officer’s decision.
  • A full audit trail of every critical action.
What the System Does

Core Modules

Every module was built around the real operating environment of Tanzanian microfinance — TZS currency, +255 mobile numbers, region/district/ward addressing and the Swahili language.

Member Onboarding

  • Registration by +255 mobile, region, district and ward
  • Registration fee — cash or mobile money
  • Loans blocked until the fee is paid
  • Members log in with their phone number

Savings & Deposits

  • Voluntary and compulsory savings products
  • Deposits and withdrawals (cash, bank, mobile)
  • Balances automatically locked for guarantors
  • Account statements

Individual Loans

  • 9 products: business, weekly, boda-boda, salary, agriculture, emergency, etc.
  • Cash-flow appraisal — installment ≤ 50% of income
  • Guarantors (including non-members, verified by NIDA)
  • Collateral with forced-sale value and coverage ratio
  • Local-government letter and supporting documents

Group Lending

  • Joint-liability solidarity groups
  • Batch disbursement to the whole group
  • Meeting collection sheets
  • Portfolio report per group

Mobile Money & SMS

  • Beem Africa (Bpay) integration
  • M-Pesa, Tigo Pesa, Airtel Money, HaloPesa
  • Automatic payment confirmation via callback
  • SMS reminders, receipts and two-factor login

Portfolio Quality

  • PAR 1, PAR 30, PAR 90
  • BoT-style loan classification and provisioning
  • Automatic late penalties after a grace period
  • Daily collections per loan officer

AI Credit Scoring

A machine-learning model (Random Forest) trained on the institution’s own loan history gives every new application a risk score — and retrains itself weekly.

Controls & Security

  • Maker-checker: the preparer can’t approve
  • Approval limits per staff role
  • Audit trail of every action and login
  • Roles and permissions

Reports & Accounting

  • Profit & Loss, income and expense reports
  • Loan agreement PDF and repayment schedule
  • Loan write-off and restructuring
  • Legacy Excel data migration
Loan Lifecycle

From Application to Closure

The system ensures no loan is disbursed until every requirement of the institution’s lending policy is met.

  1. ApplyMember / officer
  2. AppraiseCash-flow + AI score
  3. VerifyGuarantors, collateral, docs
  4. ApproveMaker-checker
  5. DisburseAgreement PDF + SMS
  6. RepayMobile / cash, PAR
Impact

Results for ABM CORD Microcredit

The system transformed day-to-day operations — from manual paperwork to reliable, digital operations.

Portfolio Visibility

Management sees PAR, overdue loans and daily collections in real time instead of waiting for month-end reports.

Secure Collections

Mobile payments are posted and confirmed automatically — reducing cash handling and the risk of errors.

Better Lending Decisions

Standardised appraisal, a mandatory checklist and an AI risk score help reduce bad loans.

Internal Control

Maker-checker, approval limits and an audit trail create accountability for every staff member.

Better Customer Service

Members receive SMS receipts and reminders and can pay from anywhere using their phones.

Reports in Minutes

P&L, loan, savings and expense reports are one click away — ready for the board and regulators.

Delivery

How We Delivered

1. Requirements discovery

Workshops with management and loan officers to map the lending policy, products and workflow.

2. Design & development

Building the member, savings, loan, group, payment and reporting modules.

3. Integration & data migration

Integrating Beem Africa (SMS and payments) and migrating members and running loans from Excel.

4. Training & go-live — July 2025

Staff training, system launch and ongoing technical support.

Technology

Technology Stack

Laravel 11 · PHP 8.2MySQL / MariaDBBeem Africa · SMS & BpayRubix ML · AIBootstrap · Responsive UIPDF · Contracts & ReceiptsCron · Automation2FA · SMS

The system runs on desktop, tablet and mobile, with Swahili as the primary language and English also available.

Running a SACCO, VICOBA or microfinance institution?

We can deliver a system like this, configured to your own lending policies.

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info@kikavutechsolutions.com · +255 769 558 137