In this video series-2, Richard Turner, former Chief Credit Officer, ShoreBank, ends his argument by explaining the last circle: Management. Here he talks about the importance of analysing management capacity when making lending decisions. He further explains the need to make alternative projections before writing loans up for approval.
This video highlights the most important stage of credit cycle – Credit Committee – where a loan officer presents his/her case along with suggested loan amount for analysis. Join a typical Credit Committee of Equity Bank and see how the loan proposals get approved and rejected. The committee explains the reasons for selection and returns the rejected loans to the respective loan officers for further analysis. However, the credit committee may reject a loan if it does not comply with Biashara Imara lending policies.
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.
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.
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.
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.