Course Objective:                                         

In the wake of growing significance of microfinance as a tool for poverty alleviation, there is a dire need for building institutions to provide microfinance services. The Course intends to provide understanding different aspects of microfinance fundamental and methodologies and monitoring to record keeping, and management.

Target Audience:                           

Microfinance Course is designed for mid-level or beginners in Microfinance, Credit Supervisors, Credit officers, Micro credit managers of Microfinance Institutes. The Course also caters specific needs of NGOs, MFIs, CBOs and community members.

Course Contents:

FUNDAMENTALS AND METHODOLOGIES OF MICROFINANCE

• Characteristics and Key Principles of Microfinance
• Various Approaches of Microfinance
• Role of Social Collateral and Social Environmental Issues
• Policy, Regulation and Supervision
• Credit need assessment by Group /community (Micro plan)
• Credit need assessment by organization
• Cost benefit analysis (Agriculture inputs, Livestock development, Enterprise)
• Risk Management, Internal Control and Fraud Prevention
• Project worth (Cost benefit analysis, Present and future value of capital, Cash flow statement, and Internal rate of return,)
• Methods of calculation of service charge/mark up
• Default Management: Definition of Default and Arrear
• Process of Management Default at: Individual Client Level, Group Level, Loan/Credit Officer Level and Area Office Level
• Curbing Defaults:
  • Loan / Credit Officer level: Client Visits, Exerting Peer Pressure, Monitoring and Follow-up, Entry into Defaulter List
  • Branch / Area Office Level
    • Team Visits (with other Loan/Credit officers, Area Management
    • Involvement of Local Administration
    • Demand Notice
    • Legal Action
  • Credit discipline (Credit progress reporting, Credit Performance monitoring, and credit tracking system and reporting)
  • Sustainability of Microcredit

MICROFINANCE AND PERFORMANCE MEASUREMENT  

• Profitability in MFIs
• Fundraising /Investment attraction
• Deposit mobilization
• Social performance monitoring
• Business development

MANAGING MICROFINANCE 

• Information asymmetry
• Financial analysis
• Credit Management
• What is Credit Management?
• Poverty – Sensitization, Causes and Alleviation
• Local Resource Mobilization
• Credit Policy, Procedure & Record Keeping
• Credit Monitoring
• Delinquency and Risk management

MICROFINANCE ALIGNED -PRINCIPLES OF ACCOUNTING AND FINANCIAL STATEMENTS  

• Basic elements of determining the account of finance and the period of Repayment
• Prediction of cash flows
• Basic five principles of accounting
• Data analysis and financial statements

TREASURY RISK MANAGEMENT

• Treasury Function and its Relationship with Risks
• Debt Management and the Debt/Equity Ratio
• Interest Rate Risk Measurement
• Gap Case Study
• Managing Foreign Exchange Risks
• Measuring the Sensitivity of Long-Term Securities
• Treasury Performance Measurement