VisionFund Rwanda (VFR PLC)is a subsidiary of VisionFund International and one of the largest deposit taking MFIs in Rwanda working hard to reach people in impoverished locations so they can create secure future for their children. Inspired by Christian values, VFR is dedicated to working with the most vulnerable families and communities regardless of religion, race, ethnicity, or gender, to create lasting change in their lives through a range of products and services that fall into five broad categories: microloans, savings programs, microinsurance, and financial education. Products and services are delivered using our Branch network (8 Branches), World Vision partners and different digital channels.

Despite robust credit assessment mechanisms, a portion of our loan portfolio has become delinquent. In order to improve recovery and maintain portfolio quality, we are looking for a qualified and experienced debt recovery firm.

Purpose of the Assignment

The purpose of this assignment is to engage a debt recovery firm to:

• Recover defaulted loan amounts from individual and group borrowers.
• Ensure debt recovery is conducted lawfully, ethically, and in a client-sensitive manner.
• Reduce VFR’s non-performing loan (NPL) ratio and improve financial health.

Scope of Work

The debt recovery firm will:

Educate clients on the importance of repayment and consequences of default.

• Initiate legal proceedings where recovery efforts fail (with prior VFR approval).
• Maintain full documentation of all recovery actions taken and communications made.
• Handle group loan dynamics sensitively, with attention to social cohesion and reputational risk.
• Instruct the clients to deposit all recovered funds into VFR designated accounts.

Key Deliverables,

Inception report with recovery strategy within the first (7–14) days.

Monthly recovery reports detailing:

• Number of clients contacted
• Amounts recovered
• Recovery method (e.g., cash, M-Banking, settlement).
• Challenges faced,
• Recommendations for accounts deemed unrecoverable.
• Recommended next steps

Performance indications

• Percentage of recovered debt against assigned portfolio.
• Timeliness of reports and communication.
• Professional conduct and adherence to legal standards.
• Client feedback and complaints (if any).

Required Qualifications

• Brief overview of the Company (Company profile) including physical company address.
• Company registration certificate,
• Proven experience of three years in performing debts recovery activities,
• Have knowledge of group lending dynamics is an added value,
• Employ the experienced field officers in debt recovery,
• Knowledge of local legal and regulatory frameworks

Financial proposal

Payment will be commission-based (e.g., % of amount recovered) or as agreed, therefore the bidders are supposed to indicate in their financial proposals the percentage per recovered amount.

 Duration of Engagement

The contract shall be for an initial period of (e.g., 12 months), renewable based on performance and mutual agreement.

Submission

Well written bid documents prepared in English will be sent to this email address info@vfcrwanda.rw with “ToR for Debts Recovery Firm” in Subject not later than 18^th July 2025 at 5:00 pm