Credit Management – KASNEB DCM Syllabus



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.


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


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


  • 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


  • 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


  • 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 *