NDB installs check system for bad loans

 THE National Development Bank partnered Credit and Data Bureau to effectively manage its lending data. 

This means that only creditable lenders are able to borrow money from NDB through its loan products.

Credit and Data Bureau began five years ago to provide information on bad debts recorded with its members.  

Essentially when a customer goes into a place to obtain credit (example, a bank or hire purchase), an enquiry is sought from Credit and Data Bureau as to the credit-worthiness of the person.

If there is a bad debt recorded with another lender, this indicates a poor credit rating and they would have to pay off that loan first.  

NDB would also upload all bad debtors to the database.  

This would have the same effect, as in the customer would need to pay NDB back before obtaining credit from another member.

In the last five years, nearly K44 million had been recovered through the database. 

It would also help with catching potential scam artists who try to obtain loans from all over PNG and this would protect Government’s investment in NDB.

In the last five years, nearly K44 million had been recovered through the database.