About the Course

Weak credit analysis and inconsistent lending judgement remain leading causes of loan portfolio deterioration across banks and microfinance institutions.

This programme builds practical credit analysis skills, covering financial statement and cash flow analysis, collateral valuation, credit scoring, loan structuring and early warning monitoring.

Participants leave with a completed credit case study, a structuring template and an early warning checklist.

Target Participants

Credit and relationship officers, Branch and SME lending staff, Credit analysts and underwriters, Loan review and credit administration staff, Risk management professionals supporting credit functions, Microfinance and SACCO credit staff, and new entrants to bank lending functions.

What You Will Learn

By the end of this course, participants will be able to:

• Analyse a borrower’s financial statements to assess creditworthiness.
• Calculate and interpret cash flow and debt-servicing capacity for lending decisions.
• Assess business and industry risk factors affecting borrower repayment capacity.
• Evaluate collateral adequacy, valuation and security perfection requirements.
• Apply credit scoring and risk-based pricing techniques to lending decisions.
• Design an appropriately structured loan facility and supporting documentation.
• Implement credit monitoring and early warning systems for existing loans.
• Prepare a credit appraisal report supporting a lending recommendation.

Course Duration

• Classroom – 5 Days
• Online – 7 Days

Course Outline

Foundations of Credit Analysis and the Lending Process

• Credit process
• Roles in lending
• Sound credit assessment principles
• Lending types
• Common causes of losses

Credit Policy, Credit Culture and the Lending Framework

• Elements of credit policy
• Credit culture/discipline
• Delegated lending authority
• Concentration limits
• Aligning policy with risk appetite

Financial Statement Analysis for Credit Decision-Making

• Reading financial statements
• Ratio analysis
• Quality of earnings
• Red flag identification
• Related-party adjustments

Cash Flow Analysis and Debt Servicing Capacity

• Cash flow statement basics
• Debt service coverage
• Working capital analysis
• Cash flow forecasting
• Sensitivity analysis

Business and Industry Risk Analysis

• Business model analysis
• Industry risk assessment
• Management quality assessment
• Macroeconomic risk factors
• SWOT techniques

Collateral Valuation and Security Perfection

• Collateral types
• Valuation methods/haircuts
• Legal perfection
• Collateral shortfalls
• Ongoing collateral monitoring

Credit Scoring, Rating and Risk-Based Pricing

• Credit scoring models
• Internal rating systems
• Risk-based pricing
• Expected loss implications
• Model validation

Loan Structuring and Documentation

• Facility structuring
• Covenants/conditions
• Documentation essentials
• Syndication basics
• Common documentation gaps

Credit Approval, Monitoring and Early Warning Systems

• Appraisal report writing
• Credit committee presentation
• Post-disbursement monitoring
• Early warning indicators
• Watch-list management

Problem Loan Management and Workout Strategies

• Problem loan classification
• Restructuring strategies
• Recovery/enforcement
• Provisioning decisions
• Lessons from case studies

Practical Outputs

• Completed credit analysis case study
• Cash flow and repayment capacity model
• Collateral valuation checklist
• Loan structuring template
• Early warning indicator checklist
• Credit appraisal report

Training Approach

Built around realistic borrower case studies with hands-on financial-statement, cash-flow and structuring exercises, culminating in a credit committee-style presentation.

Organizational Benefits

• Improved loan portfolio quality and reduced non-performing loans
• More consistent and defensible credit decision-making
• Stronger collateral and documentation practices
• Improved early identification of problem loans
• Enhanced capacity of junior and mid-level credit staff
• Stronger foundation for portfolio growth

Certification

Participants who successfully complete this course will receive a Certificate of Course Completion from Devimpact Institute, recognizing the knowledge, practical skills and competencies developed through the programme.

Tailor-Made Course

This course can be customized and delivered as an in-house programme to address the specific policies, systems, sector context and capacity-development priorities of an organization. The course duration, modules, case studies and practical exercises may be adjusted following a training needs assessment.