The British Academy for Training and Development offers a course in Lending Principles and Procedures, which aims to provide a deep understanding of the fundamentals of lending operations, including procedures, creditworthiness assessment, interest calculation, and executing credit deals. In this course, participants will acquire essential skills in finance and lending that enable them to understand the procedures followed in financial institutions, banks, and lending entities, ensuring sound, transparent, and credible decision-making.

By applying the correct financial principles, participants will learn how to responsibly issue loans, assess credit risks, and understand the impact of financial policies on the market and economy. By the end of the course, participants will be able to evaluate credit applications and make informed decisions based on financial analysis.

Who Should Attend?

• Bank and financial institution employees.
• Loan and lending department staff in companies.
• Accounting and finance employees in small and medium-sized enterprises.
• Individuals interested in developing their skills in finance and lending.
• Loan managers and coordinators who deal with lending procedures on a daily basis.

Knowledge and Benefits:

After completing the program, participants will be able to master the following:

• Understand the basic principles of lending operations.
• Learn the procedures and steps involved in granting loans.
• Learn how to assess creditworthiness and the ability to repay loans.
• Acquire the skills to apply financial terms related to loans.
• Understand credit policies and how they affect loan management.
• Learn how to calculate interest and compound interest on loans.
• Ensure the application of transparency and integrity standards in credit operations.

Introduction to Lending and Its Basics

• Lending Concept and Its Objectives

  • Definition of lending in the financial context.
  • The objectives of lending in various economic sectors.
  • The difference between personal, commercial, and mortgage loans.

• Types of Loans

  • Short-term and long-term loans.
  • Secured and unsecured loans.
  • Syndicated loans and credit facilities.

• Financial Institutions and Lending

  • The role of banks and financial institutions in lending.
  • The difference between commercial banks and investment banks.
  • The role of governments in regulating lending operations.

Creditworthiness Analysis

• Concept of Creditworthiness

  • How to assess the ability to repay loans.
  • The relationship between creditworthiness and credit risks.
  • Assessing creditworthiness for individuals and businesses.

• Credit Inquiries and Credit Reports

  • Sources of credit reports, such as credit rating agencies.
  • How to interpret and analyze credit reports.
  • The importance of credit inquiries in decision-making.

• Evaluating Financial Data

  • Analyzing financial data to assess borrower creditworthiness.
  • How to use financial statements, such as balance sheets and income statements.
  • Cash flow analysis and its impact on creditworthiness.

Pricing and Interest Strategies

• Fundamentals of Interest Rate Determination

  • How to calculate interest rates on loans.
  • The difference between fixed and variable interest rates.
  • The impact of risk on interest rate determination.

• Simple and Compound Interest

  • How to calculate simple and compound interest.
  • Applications of compound interest in long-term loans.
  • The difference between simple and compound interest and its impact on loans.

• Risk-based Pricing Mechanisms

  • How to assess credit risks for each loan.
  • Classifying clients based on risk levels.
  • Determining appropriate profit margins according to risks.

Loan Application Processes and Credit Procedures

• Loan Application Process

  • Steps for a borrower to apply for a loan.
  • Documents required for loan applications.
  • Assessing credit history and ability to repay the loan.

• Credit Investigation Procedures

  • Preliminary investigations for loan applications.
  • Verifying the provided information and data.
  • Visiting businesses or borrowers in the case of commercial loans.

• Credit Decision-making

  • Deciding whether to grant or reject the loan based on the assessment.
  • Preparing loan reports for approval or rejection.
  • Analyzing each case individually and making appropriate decisions.

Personal and Mortgage Loans

• Personal Loans

  • Procedures for granting personal loans: approvals and terms.
  • Determining the loan amount based on income and repayment ability.
  • Analyzing the financial feasibility of personal loans.

• Mortgage Loans

  • Fundamentals of mortgage loans and how to grant them.
  • How to determine the value of a mortgage loan based on the market value of the property.
  • Evaluating risks associated with mortgage loans.

• Loan Terms and Conditions

  • The importance of clearly defining loan terms and conditions.
  • Determining interest rates and repayment periods.
  • Agreeing on collateral and required documentation.

Commercial Loans and Corporate Financing

• Commercial Loans

  • Types of commercial loans: short-term and long-term.
  • The role of commercial loans in supporting businesses.
  • How to provide loans to small and medium-sized enterprises (SMEs).

• Corporate Loans

  • The financial processes institutions undergo to obtain loans.
  • Analyzing high-interest vs. low-interest loans.
  • Handling complex conditions for corporate loans.

• Debt Financing

  • Concept and mechanisms of debt financing.
  • The difference between debt financing and equity financing.
  • The role of banks in financing large corporations.

Credit Risk Management

• Types of Credit Risks

  • Repayment risks and default risks.
  • Economic and political risks and their impact on lending.
  • Interest rate and currency risks in international loans.

• Risk Management Strategies

  • How to identify and manage credit risks.
  • Using collateral and guarantees to reduce risks.
  • Predicting risks and developing emergency plans.

• Determining Credit Limits

  • How to determine credit limits for borrowers based on assessments.
  • The importance of collateral in determining credit limits.
  • Adjusting credit limits based on the type of loan.

Loan Monitoring and Debt Collection Procedures

• Monitoring Loan Performance

  • How to track loans and ensure compliance with repayment terms.
  • Identifying warning signs in high-risk loans.
  • Strategies for monitoring the financial performance of borrowers.

• Debt Collection Procedures

  • Dealing with overdue debts and collection methods.
  • Using legal procedures in debt collection.
  • Negotiating with overdue borrowers on flexible repayment plans.

• Loan Restructuring

  • How to restructure distressed loans.
  • Dealing with repayment deferment or interest rate adjustments.
  • Setting appropriate schedules for loan repayment restructuring.

Lending Technology and Modern Tools

• Electronic Lending Systems

  • The role of technology in facilitating lending operations.
  • Using electronic software for loan processing and analysis.
  • Enhancing transparency through technology.

• Fintech in Lending

  • The impact of financial innovations on the lending market.
  • Applications of artificial intelligence in credit analysis.
  • The effect of digital currencies on lending operations.

• Digital Transformation in Financial Institutions

  • The role of digital transformation in improving lending procedures.
  • Using data analytics to improve lending decisions.
  • The future of digital lending platforms.

Credit Regulations and Laws

• Local and International Lending Laws

  • Consumer protection laws and loans.
  • International regulations in the lending sector.
  • Compliance with global financial standards in lending.

• Credit Policies and Regulations

  • How to organize lending policies within an institution.
  • Ensuring compliance with legal requirements in loan granting.
  • The role of regulatory bodies in shaping credit policies.

• Future Challenges in Lending

  • Legal and ethical challenges in granting loans.
  • Economic and financial impacts on future lending.
  • How to adapt to changes in lending laws.