MicroSave Toolkit for Individual Lending for Credit Officers

Guide / Handbook
Date Published: 
Nov 2007
Tjossem, P., Ohmann, P., Pikholz, L. & Cracknell, D.

This toolkit enhances participants'’ loan processing and credit decision-making skills

This training toolkit for credit officers aims to enhance their current level of loan processing and credit decision-making skills. It specifically suggests mechanisms to improve efficiencies for the entire process, both individually and collectively. The toolkit is made up of ten sessions, which are meant to be delivered over four to five days. These include:

  • Session 1: Provides introduction to individual lending;
  • Session 2: Explains the steps for credit officers to complete the loan analysis, loan approval and collection and monitoring;
  • Session 3: Suggests methods that credit officers can use to improve their marketing techniques and customer service;
  • Session 4: Explains the process for client evaluation using the screening, application and loan appraisal tools;
  • Session 5: Teaches how to use the cash flow tool to determine client repayment capacity;
  • Session 6: Explains the basics of financial statement analysis. This session also explains how to effectively use this information to analyze a client’s present asset, liability and equity situation;
  • Session 7: Reviews the security requirements for the individual loan and gives examples of various types of collateral;
  • Session 8: Teaches credit officers how to properly evaluate the project needs and formulate a proper loan amount, repayment format, and disbursement conditions;
  • Session 9: Suggests practical steps necessary for loan approval and disbursement;
  • Session 10: Reviews the procedures that must be followed after a loan is disbursed to maintain a healthy loan portfolio.