Credit Administration and Loan Portfolio Management Training Course

This course equips participants with the skills to administer credit effectively and manage loan portfolios prudently. It focuses on credit documentation, monitoring, collateral management, portfolio analysis, provisioning, and recovery to protect asset quality.

Target Groups

• Credit administration officers and managers
• Loan officers and relationship managers
• Credit risk and portfolio managers
• Loan recovery and collections officers
• Internal auditors and compliance staff
• Staff of microfinance institutions and SACCOs
• Managers and supervisors seeking to strengthen organizational practice in this field
• Consultants and professionals supporting related organizations

Course Objectives

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

• Explain the credit lifecycle and administration functions
• Verify and manage credit documentation
• Administer loan disbursement and covenants
• Monitor facilities and detect early warning signs
• Manage collateral and security perfection
• Classify loans and apply provisioning rules
• Analyze loan portfolio quality and concentration
• Apply portfolio risk management techniques
• Manage non-performing loans and recovery
• Produce credit and portfolio reports for management

Course Modules

Module 1: Credit Administration Framework

• Credit lifecycle
• Roles and segregation of duties
• Credit policy and approval limits
• Regulatory requirements
• Credit administration controls

Module 2: Credit Documentation and Perfection of Security

• Facility letters and agreements
• Conditions precedent
• Security documentation
• Legal perfection steps
• Document custody and safekeeping

Module 3: Loan Disbursement and Covenant Monitoring

• Disbursement checklists
• Drawdown controls
• Financial and non-financial covenants
• Breach management
• Waivers and amendments

Module 4: Credit Monitoring and Early Warning

• Account conduct monitoring
• Financial statement review
• Early warning indicators
• Watch-list management
• Site visits and reviews

Module 5: Collateral Management

• Types of collateral
• Valuation and revaluation
• Insurance requirements
• Collateral monitoring
• Realization of collateral

Module 6: Loan Classification and Provisioning

• Classification criteria
• Impairment and expected credit loss
• Provisioning methods
• Regulatory requirements
• Write-offs and recoveries

Module 7: Loan Portfolio Analysis

• Portfolio quality indicators
• Concentration risk
• Sector and borrower analysis
• Migration analysis
• Stress testing

Module 8: Portfolio Risk Management

• Risk appetite and limits
• Diversification strategies
• Pricing for risk
• Portfolio reporting
• Credit risk committees

Module 9: Non-Performing Loans and Recovery

• Restructuring and rescheduling
• Recovery strategies
• Legal recovery
• Collection negotiations
• NPL management

Module 10: Practical Exercises and Capstone Project

• Reviewing a sample credit file
• Identifying documentation gaps
• Analyzing a loan portfolio dataset
• Calculating provisions
• Presenting a portfolio quality report to a mock credit committee