Program on MSME Lending

Bank credit plays an important role in the country’s industrial and economic growth. Micro, Small, & Medium Enterprises (MSME) occupy a unique position in the economy as they ensure wider distribution of the benefits of growth. Hence, there has been a renewed focus on financing MSME, which contribute significantly to employment and export earnings besides diversifying the banks’ credit risk.

There is an increasing need for skills among banking professionals in areas of understanding financial needs of MSME, proper assessment of their requirements and appreciation of risks involved in servicing these segments. This has resulted in a huge demand for trained credit officers in financing of MSME.

Duration : 5 Days (25 sessions of 70 minutes each)

Target Group:Scale II to Scale IV Managers handling credit portfolio in Branches, Controlling Offices, Centralized Processing Cells and Head Offices of Banks.

Course Objectives: 

At the end of the program, the participants would have gained:

  • Understand and appreciate the role played by MSME sector in the economy and acquaint themselves with the MSME eco-system like policy guidelines, incentives and the institutional frame-work and arrangements to promote the sector.
  • Acquire improved appraisal and monitoring skills for credit assessment and stipulation of sanction terms and covenants, monitoring the performance and handling stressed accounts.
  • Gain confidence in marketing and handling MSME portfolio for growth.

MODULES 

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Introduction to the MSME world,MSME classification and benefits.
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Exercising due diligence in acquiring and retaining clients and appraisal of their credit requirements
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Study of financial statements & credit assessment for MSMEs.
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General aspects of credit appraisal
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Importance of appraisal note – recording appraiser’s perception effectively.
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Ensuring compliance of sanction terms and conditions
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Effective use of Credit monitoring tools to prevent slippages.
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Management of stressed MSME accounts & NPA resolution.
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Business acumen to take MSME to the next level.
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Efforts of Govt./RBI to improve credit flow to MSME.
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Understanding borrower’s perspective about the Bank in MSME credit – interface with entrepreneurs
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Case Study – Appraisal/ assessing a MSME proposal.
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Government support to MSME.
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FAIR PRACTICES CODE FOR LENDERS.