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Workshop on Credit Assessment in Retail & SME Lending

This program provides a comprehensive understanding of retail and SME lending practices within Nepal’s financial ecosystem. It explores the regulatory framework, key products, risk management practices, and emerging digital trends shaping credit delivery. Participants will learn how to effectively assess, structure, and monitor retail and SME loans while aligning with prudential norms and financial inclusion goals. Through a mix of theoretical insights, practical exercises, and case studies, the program equips bankers and financial professionals with the knowledge and skills to enhance portfolio quality and 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.
  • Interpret government schemes and guarantees like CGTMSE and Mudra for SME support.
  • 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 & SME Lending
2 Days
Total
2

What will you learn with this program:

Training Contents: Day 1

Introduction to Retail and SME Credit

  • Concept and importance of retail and SME credit in financial inclusion.
  • Overview of Nepal Rastra Bank (NRB) and RBI guidelines relevant to lending.
  • KYC, AML, and customer due diligence requirements.
  • Role of lenders and ethical lending practices.

Regulatory Landscape and Institutional Framework

  • SME definition and classification norms (turnover/investment-based).
  • Priority Sector Lending (PSL) obligations, PSLC mechanism.
  • Board-level accountability and district-level PSL adjustments.
  • Compliance and fair practice codes for retail and SME portfolios.

Borrower Segmentation and Market Understanding

  • Retail borrower profiling (salaried, self-employed, professionals).
  • SME borrower segmentation: micro, small, and medium categories.
  • Cluster approach and specialized SME branches.
  • Emerging segments: women entrepreneurs, gig economy, digital SMEs.
  • Supply chain ecosystems and TReDS platform 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.
  • Top-up and additional loan management.
  • Monitoring and fair practices for retail portfolios.

SME Credit Products, Schemes, and Support Mechanisms

  • Working capital and term loans (CC/OD, composite loans, GCC).
  • Government-supported schemes: Mudra, PMEGP, Stand-Up India.
  • Credit guarantee coverage under CGTMSE.
  • Institutional support ecosystem: RSETIs, FLCs, and SIDBI initiatives.
  • ESG (Environmental, Social, and Governance) practices in SME lending.

Training Contents: Day 2

Digital and Cash Flow–Based Lending 

  • Role of fintech and APIs in credit delivery.
  • Use of credit bureaus, account aggregators, and alternative data.
  • Cash flow–based assessment techniques for SME and retail borrowers.
  • Digital lending platforms and UPI-linked credit products.
  • Data security and customer consent frameworks.

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: SARFAESI, Lok Adalat, DRT, settlements, and write-offs.
  • Case-based analysis on stressed asset management.

Practical Exercises and Case Clinics

  • Case 1: Financing a small exporter through SME credit line.
  • Case 2: Retail housing loan appraisal and documentation.
  • Case 3: Restructuring a stressed SME under CGTMSE.
  • Group discussion and presentations (5 participants per group).

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.
  • Summary of learnings and implementation roadmap.

Exit Test and Feedback

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

Methodology:

  • Exercises
  • Case Studies
  • Reflective Discussions
  • Interactice Lectures

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:

Investment: