Module 04: Loan risk analysis

In this module students will become familiar with 5Cs and 3Rs and loan analysis indicators. These analytical tools or indicators for loan analysis can be divided into five categories, which are:

  1. Profitability
  2. Liquidity
  3. Solvency
  4. Repayment capacity 
  5. Risk

Participants will also learn about assessing and managing the risk through case study.

Resources

resource title type year resource
Module 4: Case study exercise Case Study 2006
This resource appears in: Module 04: Loan risk analysis

Learning Objective of this case is to remind students of the key factors in loan analysis – character, capacity, capital, collateral and conditions - and see how an initial screening process and loan application form contribute to providing this information.

Author Various
Region / Country Global
Keywords Loan Analysis
Module 4: Elective reading material Paper 2006
This resource appears in: Module 04: Loan risk analysis

The following documents are recommended as additional reading material for participants wishing to further develop their knowledge in this topic. Please follow the links below to download the documents direct from the Rural Finance Learning Centre.

Author Various
Region / Country Global
Keywords Loan Analysis, Indicators, Bank Loans
Module 4: Module outline and facilitator's notes Guideline 2006
This resource appears in: Module 04: Loan risk analysis

Module 4 introduces the concepts and the formulas and gives participants a chance to practice them in the case study. Module 6 goes much more in-depth on this same material, spending almost all of the class time working on a case study.

Author Miller, C.
Region / Country Global
Keywords Teaching Plan
Module 4: Power point presentation and notes Presentation 2006
This resource appears in: Module 04: Loan risk analysis

Module 4 presentation covers 5 Cs in Loan analysis, 3 Rs, the ratios and cash flow analysis.

Author Miller, C.
Region / Country Global
Keywords Loan Analysis, Financial Ratios
Module 4: Reading material for pre-course distribution Paper 2006
This resource appears in: Module 04: Loan risk analysis

The following documents are recommended as required reading for this module. They should be distributed to course participants in advance of the course or session.

  1. Financial analysis measurements
  2. Ratios
  3. Rural loan analysis chart
  4. Client loan assessment
Author Various
Region / Country Global

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