MicroSave Toolkit for Individual Lending for Credit Managers

This toolkit targets MFIs that previously provided only group loans and/or those that wish to improve management of their credit departments. The toolkit comprises the following five sessions that take a risk management perspective of the administration of credit and delivery of credit products.

• Session 1: Adding Individual Lending to Your Portfolio, identifies the changes that may be required in portfolio management to reduce the risks associated with the introduction of an individual lending product;
• Session 2: Institutional Risk Management for Credit Managers, discusses the institutional aspects of risk management and analysis, with a primary focus on risks pertinent to the credit managers job;
• Session 3: Managing Credit Risk through the Step by Step Loan Process, points out the risks and risk reduction tactics in portfolio management throughout the step-by-step loan process, from marketing and client selection to monitoring;
• Session 4: Collections and Problem Loans from a Managers Perspective, informs the management about collection issues and what to do about them, by delving deeper into:
  • The costs of write offs;
  • Causes of delinquencies and problem loans;
  • Ways to address problem loans.
• Session 5: Reporting, discusses reports necessary for managing a portfolio - both those of quality and of productivity - and how to use these to reduce risk and achieve the MFI objectives.