Empower SACCO Credit Teams with Strategic Loan Portfolio and Risk Assessment Skills
What is Loan Portfolio and Credit Risk Management in SACCOs?
Loan portfolio and credit risk management is the backbone of financial sustainability for SACCOs. This advanced training equips SACCO credit officers, managers, and board members with essential skills to minimize loan defaults and improve return on assets. Participants gain practical tools to enhance risk evaluation, implement recovery strategies, and maintain regulatory compliance.
Key Objectives of the SACCO Credit Management Course
By the end of this four-day intensive training, participants will:
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Master key principles of effective loan portfolio management.
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Evaluate borrower creditworthiness using financial and qualitative tools.
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Apply risk-based lending techniques to enhance decision-making.
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Monitor loan performance using real-time tracking systems.
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Implement proper loan classification and provisioning strategies.
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Align institutional credit policies with SACCO regulations and compliance standards.
Course Content Breakdown
Module 1: Loan Portfolio Management Basics
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Overview of SACCO credit types
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Loan cycle: from application to recovery
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Traits of a strong and healthy loan portfolio
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Credit policy frameworks and standard operating procedures
Module 2: Credit Risk Assessment Tools
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Credit scoring and evaluation models
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Deep dive into the 5 Cs of credit
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Financial statement analysis and borrower review
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Real-world creditworthiness assessment techniques
Module 3: Loan Appraisal and Approval Process
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Importance of documentation and due diligence
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Interest rate models and loan pricing strategies
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Fundamentals of risk-based lending
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Credit committee structure and decision-making processes
Module 4: Monitoring Loans and Spotting Early Risks
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Key performance indicators: PAR, NPL, and more
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Practical monitoring tools and software
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Identifying red flags early and corrective action steps
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Portfolio risk segmentation for better control
Module 5: Loan Classification and Provisioning Standards
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SASRA-compliant loan classification procedures
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Provisioning matrix and calculations
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Financial reporting and impact analysis
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Balancing risk and profitability
Module 6: Credit Recovery and Legal Approaches
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Soft vs. hard recovery strategies
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Loan restructuring and rescheduling
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Enforcement through legal avenues and collateral recovery
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Engaging third-party debt collection services
Module 7: Credit Risk Management and Internal Controls
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Integrating credit risk into SACCO-wide risk frameworks
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Fraud detection and control strategies
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Role of internal audit and credit risk teams
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Reviewing and updating credit policies periodically
Module 8: Practical Case Studies and Group Work
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Hands-on review of real loan portfolio case studies
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Credit report analysis and dashboard design
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Role-play sessions for credit committee simulations
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Team presentations and practical problem-solving
Who Should Attend This Training?
This course is ideal for:
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SACCO Credit and Loan Officers
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Credit Committee Members
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Branch and Credit Managers
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Internal Auditors and Risk Professionals
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Board Members overseeing credit functions
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Finance officers handling loan-related operations
Training Duration and Format
4 Days Intensive Program (Physical or Virtual):
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Day 1: Loan Portfolio Management + Credit Risk Assessment
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Day 2: Appraisal & Approval + Monitoring Techniques
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Day 3: Classification + Recovery Strategies
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Day 4: Risk Management + Practical Exercises & Certification
Boost SACCO Financial Health Through Smarter Credit Practices
This course empowers your SACCO team to minimize credit risk, improve loan recovery, and comply with regulatory guidelines. Gain tools to analyze, monitor, and optimize your loan book—while fostering accountability and sustainable growth.