Credit Management in the Financial Sector – KASNEB Syllabus



This paper is intended to equip the candidate with the knowledge, skills and attitudes required for the administration for credit in the financial sector.


A candidate who passes this paper should be able to:

  • Undertake credit    administration    duties    and    responsibilities    in                     financial institutions
  • Align credit assessments in conformity to laid down policies, procedures and practices
  • Assess the impact of lending in promoting business enterprises in  the


Introduction to credit administration

  • Identifying the credit opportunity
  • The credit process
    • Identifying the credit opportunity
    • Credit evaluation
    • Credit decision making
    • Credit monitoring
  • The credit analysis process
  • The five Cs of credit
  • The credit analysis path


  • Definitions
  • Secured and unsecured debts
  • Features of a good security
  • Types of securities
  • Taking and perfection of securities
  • Documentation of securities
  • Lodging and discharging of securities

Credit facilities

  • Introduction
  • Funded and non-funded securities
  • Management of overdrafts
  • Structuring of credit facilities (Loans and advances)

Credit cards

  • Definitions (credit and debit cards)
  • Importance of credit cards
  • Parties to credit card transactions
  • Main features of credit cards
  • Types of credit cards
  • Assessment and appraisal of credit card applications
  • Managing credit cards’ fraud
  • Credit cards’ risk management
  • Delinquency management

Asset finance and leasing

  • Overview of asset finance
  • Types of asset finance
  • Assessment and management of asset finance risks
  • Choosing the right type of asset finance
  • Definition of leasing
  • Types of leasing
  • Merits and demerits of leasing
  • The leasing process
  • Assessment and appraisal of leasing applications
  • Marketing and leasing
  • Leasing risks management

Hire Purchase

  • Overview of hire purchase
  • Formation of a hire purchase contract
  • Duties and rights of parties to a hire purchase contract
  • Termination of hire purchase contracts
  • Advertising for hire purchase
  • Hire purchase risk management

Types and products of mortgage

  • Introduction to mortgage
  • Types of mortgages
  • Parties to a mortgage transaction
  • Products offered under mortgage
  • Target customers and mortgage financiers
  • Analysing mortgage application propositions
  • Types of documents and registration process
  • Risk management and recovery


  • Introduction to microfinance
  • Distinction between microfinance and microcredit
  • Formulation of policies and procedures
  • Recruitment and retention of clients
  • Savings and lending processes management
  • Loan portfolio management
  • Risk management in MFIs
  • Role of regulatory authorities in microfinance

Cooperative societies

  • Types of cooperatives
  • Cooperative principles and practice
  • Cooperative credit programmes and policies
  • Cooperative structure
  • Savings and lending processes
  • Risk management
  • Delinquency management
  • The future of cooperatives
  • Role of regulatory authorities

Emerging issues and trends

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