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:

  • Understand the loan product development lifecycle

  • Conduct market research and assess borrower needs

  • Design innovative, member-friendly loan products

  • Apply pricing models that consider cost, risk, and affordability

  • Align loan products with institutional strategy and compliance

  • Monitor product performance and adapt for better results

Course Content

 Module 1: Introduction to Loan Product Development

  • Importance of innovation in SACCO lending

  • Stages of product development: from concept to launch

  • Aligning loan offerings with SACCO goals and member profiles

Module 2: Market Research and Product Design

  • Conducting needs assessments and feedback surveys

  • Segmenting borrowers by income, purpose, and risk

  • Designing features: term, purpose, security, repayment

Module 3: Loan Pricing Fundamentals

  • Understanding cost of funds, operating costs, risk margins

  • Interest rate types (flat vs. reducing balance)

  • Transparency in fees and borrower communication

Module 4: Costing and Risk-Based Pricing

  • Calculating true loan costs and pricing for risk

  • Using default rates and provisions in pricing

  • Case examples and loan pricing simulations

Module 5: Regulatory and Compliance Considerations

  • Usury laws, disclosure rules, and consumer protection

  • Required documentation and reporting standards

Module 6: Product Rollout and Marketing

  • Launch strategies, staff training, and awareness

  • Promoting products through digital and traditional channels

  • Setting performance indicators and loan targets

Module 7: Monitoring and Evaluation

  • Analyzing uptake, repayment, and profit margins

  • Gathering feedback and refining loan offerings

  • Success vs. failure: real-world case study

Module 8: Product Simulation Exercise

  • Group project: design and price a new loan product

  • Peer review and presentation

  • Problem-solving common rollout issues

Target Audience

  • Credit and Loan Product Managers

  • SACCO and MFI Board Members

  • Branch Managers and Lending Officers

  • Finance, Risk, and Product Development Teams

  • Strategic Planners and Marketing Teams

Course Duration

3 Days (In-Person or Virtual Delivery)

  • Day 1: Modules 1 to 3

  • Day 2: Modules 4 to 6

  • Day 3: Modules 7 to 8 + Simulation & Certification

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