Module 06: Loan management

The conceptual content of the Module 4 and Module 6 are similar. This has been done deliberately since Module 4 is an introduction to theme and Module 6 building on it. The slides in Module 4 introduce the concepts and some of the basic formulas needed to do the Aglend case study. Then Module 6 is focused basically on a case study that deepens the participant’s knowledge and skills at working with ratios. Remember: The 10 modules are designed so that they build progressively the participant’s understanding. The first five modules can be offered independently as an introductory course. Then the second set of five modules (Numbers 6 through 10) can be offered as a more advanced course for those who have taken the introductory course or for persons who already through their work experience have the basic knowledge provided in the first five modules. Modules 9 and 10 also offer advanced topics within the module folders as shown in folders marked Module 9 Advanced and Module 10 Advanced respectively.

Resources

resource title type year resource
Module 6: Case study exercise Case Study 2006
This resource appears in: Module 06: Loan management

Case Exercise – the focus is to use the information to decide if, based on the budgets and case flow the client should get a loan and then for what amount, what length, when should disbursements be made and when and how should it be repaid.

Several cases of spreadsheets are included in the case material.

  • It is suggested to use the Crespo Case to explain the model and required information. Please note that this case closely follows the description of the FAO-GTZ Agricultural Production Toolkit and as such the description can be found in that Toolkit manual listed in the elective reading.
  • Then, it is suggested to use the Nigeria Loan Case. Not all the spreadsheets are shown since the focus should be only on the crop budget, including timing of costs and labor, and then to the cash flow spreadsheet which is where the main focus and discussion should be focused. This in turn leads to the loan planner spreadsheets which are generated and the graphs. The “cheat-sheet” list of indicators is included to help interpret the financial ratio information.
Author Various
Region / Country Global
Nigeria
Keywords Cash Flow, Loan Planner
Module 6: Elective reading material Paper 2006
This resource appears in: Module 06: Loan management

The following documents are recommended as additional reading material for participants wishing to further develop their knowledge in this topic. The excel based loan planner tool (found in the case study folder) follows the outlay design and description in the Agricultural Production Lending Toolkit. Please follow the links below to download other documents direct from the Rural Finance Learning Centre.

Author Various
Region / Country Global
Keywords Cash Flow, Lending
Module 6: Module outline and facilitator's notes Guideline 2006
This resource appears in: Module 06: Loan management

Three documents are provided here:

  • Module outline
  • Facilitator's guide - Nigeria case
  • Cash flow & loan planner model
Author Miller, C.
Region / Country Global
Keywords Teaching Plan, Cash Flow
Module 6: Power point presentation and notes Presentation 2006
This resource appears in: Module 06: Loan management

PowerPoint covers following topics:

  • The 5Cs of loan analysis
  • 5Cs=5 factors for analyzing credit risk
  • The 3Rs
  • Types of risk
  • Profitability indicators
  • Repayment capacity
  • Cash flow
  • Guarantee analysis
Author Miller, C.
Region / Country Global
Keywords Loan Analysis, Rural Finance, Loan Planner
Module 6: Reading material for pre-course distribution Article 2006
This resource appears in: Module 06: Loan management

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 measurment
  2. Financial indicators - ratios
  3. Rural loan analysis - chart
Author Various
Region / Country Global
Keywords Financial Analysis, Ratios, Financial Indicators

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