This study investigated the impact of loan product design, client screening practices, and credit officers’ competence on loan default rates at Microloan Foundation Malawi Limited. The institution has recently experienced increasing levels of loan default, posing significant threats to its profitability, operational efficiency, and long-term sustainability. While similar studies have been conducted in the broader microfinance sector, little empirical evidence exists on how these specific factors influence repayment performance in the context of Microloan Foundation Malawi.

A descriptive research design was employed, and data were collected through structured questionnaires administered to 44 credit officers across six branches. The analysis, conducted using Microsoft Excel, revealed that loan defaults are strongly associated with the competence of credit officers, particularly their work experience. Findings also suggest that well-structured loan products and rigorous client screening can play an important role in mitigating default risks.

The study concludes that strengthening credit officers’ training and professional development, alongside refining loan design and client appraisal mechanisms, could significantly improve repayment outcomes. Practical recommendations are provided for institutional policy and practice, and areas for further research are proposed, including exploring borrower-related factors and the influence of external economic conditions on loan repayment behaviour.