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Workshop on Credit Assessment in Retail and SME Lending

Workshop on 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:

 

  • To provide a comprehensive understanding of retail and SME lending within Nepal’s financial sector.
  • To familiarize participants with the regulatory framework governing lending practices in Nepal.
  • To develop knowledge of key retail and SME loan products and their practical applications.
  • To enhance skills in credit assessment, loan structuring, and portfolio monitoring.
  • To strengthen understanding of risk management techniques in retail and SME lending.
  • To explore the role of digital innovation in improving credit delivery and financial inclusion.
  • To equip participants with practical tools through case studies and hands-on exercises.
  • To support financial professionals in maintaining portfolio quality and promoting sustainable credit growth.

 

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 Startups.
  • 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 systems 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:

 

  • Interactive Lectures: Traditional teaching combined with participant engagement.
  • Case Studies & Clinics: Hands-on analysis of real-world scenarios, such as financing small businesses, housing loan appraisals, and restructuring SME loans.
  • Practical Exercises: Direct application of credit assessment techniques.
  • Reflective Discussions: Group discussions and presentations to share insights.
  • Assessment: The program concludes with an Exit Test consisting of Multiple Choice Questions (MCQ)

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:

Chitwan: February 6th and 7th, 2026.

Butwal: February 9th and 10th, 2026.

Dhangadi: February 13th and 14th, 2026.

Birgunj: February 17th and 18th, 2026

 

Investment: