MVL | Course Details

Commercial Lending

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Commercial Lending

This course will enable you to understand commercial lending and enrich your knowledge about various related products and services.
The course is focused on the needs of professionals wishing to acquire knowledge of commercial lending in order to enable them to provide
technological solutions to banking Industry.

Who should attend:

Professionals, project managers, business analysist, software developers, testers, intending to work in commercial banks or in software companies providing solutions in commercial lending in western countries.


Course contents

Introduction

  • Concept of lending and lending related credit risk
  • Twin goals of lending
  • Risk management policy and credit policy
  • Brief understanding of loan life cycle: from origination till closure
  • Credit risk management
    • Limits, collateral, guarantors, derivatives, on-balance sheet netting
  • Loan classification based on
    • Purpose
    • Usage i.e. revolving/non-revolving
    • Security i.e. secured/unsecured
    • Interest type
    • Method of repayment
    • Currencies
    • Business type and size
    • Setting up/working capital

 

Loan origination

  • Credit risk assessment
  • Five “C”s of good credit and 5 “C”s of bad credit
  • Qualitative analysis
  • Quantitative analysis
  • Credit rating
  • Credit scoring
    • Application scoring
    • Behavioral scoring
  • Credit rating vs. credit scoring
  • Internal scoring vs. external scoring
  • Risk based pricing and methods of computing interest
    • Risk based pricing
    • Interest rate types: fixed, variable/floating, tiered/stepped, blended, LTV based, index-based rates
    • Prime Lending Rate (PLR) / LIBOR / LIBID / LIMEAN / MIBOR
  • Loan underwriting/sanction terms
    • Covenants – positive covenants / negative covenants
    • Using covenants for risk mitigation

 

Credit execution and administration

  • Loan documentation: loan covenants/terms
  • Concept of drawing power/loan availability
  • Loan monitoring and review

 

Loan products and loan processes in detail

  • Revolving loans/non-revolving loans
  • Term loan, project loan bridge loan
  • Open credit lines and asset-based loans
  • Working capital loans: overdraft, cash credit
  • Pre-shipment loans/post-shipment loans
  • Bill discounting and bill purchase
  • Factoring, reverse factoring, forfaiting
  • Letters of credit/bank guarantees/standby letters of credit
  • Introduction to Incoterms/UCPDC/eUCP/URC/URDG
  • Securitization, mortgage backed securities, asset backed securities, pass-through-certificates, collateralized debt obligations, collateralized loan obligation, collateralized mortgage obligation
  • Capital market syndication

 

Loan collection and recovery

  • Collection
  • Recovery process
  • Repossession
  • One-time settlement

 

Problem loan management

  • Prudential norms/delinquency
  • Problem loan management process

 

Overview of loan/credit risk related regulation

  • Basel I/II/III

 

Banking arrangements

  •  Multiple banking/consortium banking
  • Loan syndications

 

Overview of loan regulation in USA

  • Equal Credit Opportunity Act
  • Fair Lending Act
  • Truth in Lending Act
  • Fair Debt Collection Practices Act
  • Regulations from other geography UK

Download Brouchure
Delivery mode
Classroom and Live Virtual Classroom (LVC) Mode
Duration
Approx 12 hours of comprehensive learning
Course level
Foundation level
Course Price
Indian-10,000+18%GST; Foreign-USD400+18%GST

Contact US

MVL Consulting Private Limited

Address : #17, Laxman Villa Condominium, Paud Road, Pune, Maharashtra 411038 India 

Phone : +91 – 20 – 2546 6154

Phone : +91 – 20 – 2542 2874

Mobile: +91 – 9764 835 350

Email-id : info@mvlco.com

CIN No. : U31909MH1996PTC100429

 

Contact for Inhouse Programs

Head- Learning and Development

Name : Sangeeta Dokey

Phone : +91 9168 435 350

Email-id :sangeeta@mvlco.com

 

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