X

Credit Assessment in Retail and SME Lending

Workshop on "Credit Assessment in Retail and SME Lending"

Credit Assessment in Retail and SME Lending

This program offers an in-depth overview of retail and SME lending in the context of Nepal’s financial sector. It covers the regulatory environment, major lending products, risk management approaches, and the growing role of digital innovation in credit delivery. Participants gain practical skills to assess, structure, and monitor retail and SME loans in line with prudential requirements and financial inclusion objectives. Combining conceptual learning with hands-on exercises and real-world case studies, the program enables bankers and financial professionals to strengthen portfolio quality and support sustainable credit growth.

Objectives of the program:

  • Understand the regulatory and institutional landscape governing retail and SME finance in Nepal.
  • Identify and differentiate between major lending products such as housing, vehicle, personal, and SME credit lines.
  • Evaluate borrower profiles using cash flow–based and digital assessment tools.
  • Apply fair practices code, KYC/AML standards, and responsible lending principles.
  • Analyze credit risks, develop early warning systems, and manage stressed assets effectively.
  • Utilize fintech and data-driven models for efficient credit appraisal and monitoring.
  • Engage in case-based problem-solving on SME restructuring and retail loan follow-up.
Topics
Days
Workshop on "Credit Assessment in Retail and SME Lending"
2 Days
Total
2

What will you learn with this program:

Introduction to Retail and SME Credit

  • Concept and importance of retail and SME credit in financial inclusion.
  • Overview of Nepal Rastra Bank (NRB) guidelines relevant to lending.
  • KYC, AML, and Customer Due Diligence requirements in Lending Process.
  • Role of lenders and ethical lending practices

Regulatory Landscape and Institutional Framework

  • SME definition and classification norms with reference to Industrial Enterprise Act.
  • MSME Lending with reference to NRB Directive.
  • Retail Lending practices in Nepal
  • Consumer protection in retail and SME lending

Borrower Segmentation and Market Understanding

  • Retail borrower profiling (salaried, self-employed, professionals).
  • SME borrower segmentation: micro, small, and medium categories.
  • Emerging segments: women entrepreneurs, gig economy, Tech Startupss.
  • Supply chain ecosystems overview.

Retail Lending Products and Features

  • Housing loans: title deed scrutiny, moratorium, EMI, and follow-up.
  • Vehicle loans, personal loans, education loans, and consumer durable loans.
  • Gold and silver loans: valuation, documentation, and recovery process.
  • Monitoring and fair practices for retail portfolios.

SME Credit Products, Schemes, and Support Mechanisms

  • Working capital and term loans
  • Government-supported schemes – Refinance, Interest Subsidized Loans
  • Credit guarantee coverage under DCGF
  • ESG (Environmental, Social, and Governance) practices in SME lending.

Digital and Cash Flow–Based Lending

  • Role of fintech and APIs in credit delivery.
  • Use of credit bureaus, psychometric approach and alternative data system in borrower selection.
  • Cash flow–based assessment techniques for SME and retail borrowers.
  • Digital lending platforms and tech-based credit products.

Risk Management, Monitoring, and Recovery

  • Identification of key risk variables (credit, operational, compliance).
  • Early Warning Systems (EWS) and portfolio monitoring dashboards.
  • Prudential norms, provisioning, and restructuring frameworks.
  • Recovery mechanisms: legal recovery approaches, DRT, settlements, and write-offs.
  • Case-based analysis on stressed asset management.

Practical Exercises and Case Clinics

  • Case 1: Financing a small business through SME credit products.
  • Case 2: Housing loan appraisal and documentation.
  • Case 3: Restructuring an SME loan
  • Group discussion and presentations

Way Forward and Global Best Practices

  • Sustainable credit growth and green lending practices.
  • Integrating ESG considerations in portfolio decisions.
  • Global models of SME and retail lending innovations.

Exit Test and Feedback

  • Multiple Choice Questions (MCQ)-based assessment.
  • Group reflection and participant feedback.

Methodology:

  • Exercises
  • Case Studies
  • Reflective Discussions
  • Interactive lessons

Targeted-groups:

This program is designed for Branch Managers, Credit Officers, Assistant Relationship Managers, Relationship Managers, Credit Analysts, and Risk Officers from Banks and Financial Institutions, particularly those handling Retail, SME, or Priority Sector Lending portfolios. It is also ideal for professionals seeking to enhance their understanding of retail and SME credit management.

Duration:

2 days

Investment:

Rs. 17,000 (Excluding VAT)

Credit Assessment in Retail and SME Lending