Course Overview:
This 3-day training equips SACCO professionals with practical skills to design competitive, member-centric loan products. Participants will learn how to align loan offerings with market needs, apply risk-based pricing strategies, and ensure compliance while maximizing sustainability and profitability.
Course Objectives
By the end of the training, participants will be able to:
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Understand the loan product development lifecycle
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Conduct market research and assess borrower needs
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Design innovative, member-friendly loan products
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Apply pricing models that consider cost, risk, and affordability
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Align loan products with institutional strategy and compliance
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Monitor product performance and adapt for better results
Course Content
Module 1: Introduction to Loan Product Development
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Importance of innovation in SACCO lending
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Stages of product development: from concept to launch
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Aligning loan offerings with SACCO goals and member profiles
Module 2: Market Research and Product Design
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Conducting needs assessments and feedback surveys
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Segmenting borrowers by income, purpose, and risk
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Designing features: term, purpose, security, repayment
Module 3: Loan Pricing Fundamentals
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Understanding cost of funds, operating costs, risk margins
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Interest rate types (flat vs. reducing balance)
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Transparency in fees and borrower communication
Module 4: Costing and Risk-Based Pricing
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Calculating true loan costs and pricing for risk
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Using default rates and provisions in pricing
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Case examples and loan pricing simulations
Module 5: Regulatory and Compliance Considerations
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Usury laws, disclosure rules, and consumer protection
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Required documentation and reporting standards
Module 6: Product Rollout and Marketing
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Launch strategies, staff training, and awareness
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Promoting products through digital and traditional channels
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Setting performance indicators and loan targets
Module 7: Monitoring and Evaluation
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Analyzing uptake, repayment, and profit margins
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Gathering feedback and refining loan offerings
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Success vs. failure: real-world case study
Module 8: Product Simulation Exercise
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Group project: design and price a new loan product
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Peer review and presentation
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Problem-solving common rollout issues
Target Audience
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Credit and Loan Product Managers
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SACCO and MFI Board Members
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Branch Managers and Lending Officers
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Finance, Risk, and Product Development Teams
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Strategic Planners and Marketing Teams
Course Duration
3 Days (In-Person or Virtual Delivery)
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Day 1: Modules 1 to 3
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Day 2: Modules 4 to 6
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Day 3: Modules 7 to 8 + Simulation & Certification