In this video series-3, Richard Turner, former Chief Credit Officer, ShoreBank, talks about loan appraisal and discusses how credit officer should behave during the appraisal. He also shares his general observations about underwriting loans.
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Loan analysis (Tricks of the trade): Part 1
In this video series-1, Richard Turner, the former Chief Credit Officer, ShoreBank, shares his “tricks of the trade” for loan analysis. Richard explains the Lending Process as an intersection of the three circles: Market, Management and Mathematics. He further explains the dynamic relation between the three components. Turner has been involved in making loans and training credit staff for well over 30 years. Much of that experience was spent in the United States but also in a number of foreign countries, primarily in Eastern Europe.
Loan Appraisal: Home Visit
The video describes the list of activities a loan officer is expected to do and the details that need to be recorded at Home Visit. For many newcomers to microfinance, the Home Visit is probably the most unconventional part of the loan appraisal in MFIs. What does a credit officer look at when he or she visits the client’s home? What questions does he ask? Which family members does he want to meet? For details, please join our camera on an example of a Home Visit.
Loan Appraisal: Visiting Client’s Business
In this video, MicroSave explains the Bishara Imara Lending Cycle, an individual loan product of Equity Bank. This episode discusses the first few steps of the lending cycle, namely, loan application, loan appraisal and analysis. After filling of the loan application, the loan officer visits the business premise and residence of the client for loan appraisal and analysis. The Loan Appraisal process is something that requires a considerable amount of skill and knowledge from the loan officer. Further, the loan officer also carries out background research before moving on to the next step of the lending cycle.
Lending Cycle: New Customer Identification Filter
In this video, Head of Microfinance at International Finance Corporation (IFC), Martin Holtman, discusses the New Customer Identification and Filter Process of lending cycle of Individual Loan Product of Equity Bank. The concept of Lending Cycle is an excellent training tool for new loan officers and other staff engaged in lending operations. Using the individual loan product of Equity Bank Kenya as an illustrative example, the video moves through the first steps of the Lending Cycle, namely New Customer Introduction and Filter.
Individual Lending Product Features: Equity Bank
In this video, Equity Bank team shares the challenges faced while developing Biashara Imara – an individual loan product in Kenya for people with low earnings – and what steps did they take to overcome the initial glitch. Further the branch manager attributes Biashara Imara’s success on its excellent performance based on various parameters such as growth, repayment and portfolio. The Equity bank team also outlines the product features of Biashara Imara and elaborate the key marketing strategy adopted to promote the loan product.