Credit Management – KASNEB DCM Syllabus

PAPER NO. 5 CREDIT MANAGEMENT

GENERAL OBJECTIVE

This paper is intended to equip the candidate with knowledge, skills and attitudes required for the application of credit management principles in various lending financial institutions.

LEARNING OUTCOMES

A candidate who passes this paper should be able to:

  • Formulate a credit policy for an organisation
  • Identify all credit providers in the market
  • Undertake credit assessment on individuals and businesses
  • Monitor credit portfolios
  • Analyse the impact of extending credit in promoting

CONTENT

Overview of credit providers

  • Banks
  • Cooperative societies
  • Microfinance institutions
  • Finance houses
  • Shylocks
  • Table banks
  • Online credit providers

Overview of credit policy

  • Definition of a credit policy
  • Types of credit policies
  • Contents of a credit policy
  • Operating principles of a credit policy
  • Advantages of a credit policy

Overview of credit assessment

  • Customer identity (KYC)
  • Sources of information used in credit assessment
  • Credit risk analysis tools and techniques
  • Credit assessment (Consumer credit, trade credit and export credit)
  • Reassessment of existing customers

Introduction to bank credit

  • Types of bank credit facilities
  • Overview of bank credit process
  • Characteristics of bank credit products
  • Attributes of sound bank lending
  • Monitoring and control of bank credit facilities

Credit cards

  • Parties to credit card transactions
  • Types of credit cards
  • Features of credit cards
  • Importance of credit cards
  • Assessment and appraisal of credit card applications
  • Managing credit card frauds and other risks
  • Credit cards delinquency management

Microfinance

  • Introduction to microfinance
  • Types of microfinance products
  • Recruitment and retention of clients
  • Savings and lending processes management
  • Portfolio management
  • Risk management in MFIs
  • Delinquency management in MFIs

Cooperatives

  • Nature of cooperatives
  • Cooperative principles and practices
  • Cooperative credit products and policies
  • Cooperative structure & Management
  • Savings and lending processes
  • Risk management in Cooperatives
  • Delinquency management in cooperatives
  • Role of regulatory authorities

Leasing and asset finance

  • Definition of leasing
  • Types of leases
  • The leasing process
  • Assessment and appraisal of leasing applications
  • Marketing and leasing
  • Advantages and disadvantages of leasing
  • Overview of asset finance
  • Types of asset finance
  • Choosing the right type of finance
  • Risk management in asset finance

Hire purchase

  • Nature of hire purchase
  • Formation of a hire purchase agreement
  • Duties, rights and obligations of the parties
  • Advertising for hire purchase
  • Termination of a hire purchase agreement
  • Risk management in hire purchase

Mortgages

  • Introduction to mortgages
  • Parties to a mortgage transaction
  • Types of mortgages
  • Products offered under mortgage
  • Target customers and mortgage financiers
  • Documentation and registration process
  • Risk management in Mortgage Lending

Emerging issues and trends



Leave a Reply

Your email address will not be published. Required fields are marked *