Bank Lending And Loan Administration
- Management Sciences
- 400 level
- 2 credit units
- 207 pages
- 20 units
This course is designed to give you self-instruction on the rudiments of Bank Lending and Loan Administration. It teaches bank policies on lending, lending procedures, and objectives of lending & credit administration. The course also covers collateral security issues, credit insurance, and export credit protection. It further explains loan workout situations, analysis of financial statements, and asset and liability management in banks.
About this course
- Difficulty
- Intermediate
- Study hours
- 156 hours
- Maths
- Basic
- Content
- Theoretical
- Practical work
- No
- Assignments
- Tutor Marked Assessments
- Final Examination
What you'll read
The real module and unit structure of BFN405, taken from the course material NOUN publishes.
One paragraph, so you can see how it reads
BFN405 · UNIT 1: BANK POLICIES ON LENDING
The modules and units are self explanatory as they summarize Bank lending and Loan Administration for 400 level students of Bachelors’ degree of Entrepreneurial and Business Management. You will need to work in groups with other students in this course and program in order to discuss, compare notes and thoughts and to exchange and share ideas.
What you should be able to do
- Explain bank lending policies and procedures
- Identify and manage credit risks
- Evaluate collateral security
- Analyze financial statements
- Manage assets and liabilities in banks
- Apply loan workout strategies
What it prepares you for
- Loan Officer
- Credit Analyst
- Bank Manager
- Financial Analyst
- Risk Manager
- Banking
- Finance
- Credit Unions
- Microfinance Institutions
- Investment Banking
Where it gets hard
The units students slow down on, and what makes each one heavy.
- Module 4:
Unit 3: Asset and Liability Management in Banks
Requires understanding of complex financial instruments and their impact on bank's financial health.
- Module 4:
Unit 2: Analysis of Financial Statement
Involves advanced financial modeling and forecasting techniques.
A suggested way through it
13 weeks, about 42 hours in total. Yours will differ.
- Week 1Module 1:
Unit 1: Bank Policies on Lending · 2 hours
Explain the nature of bank policies on operations. Discuss the principles of bank lending. Explain major areas of bank policies on lending.
Unit 2: Lending Procedures · 2 hours
Explain the nature of loan request from customer. Discuss the essence of loan interview. Mention the reasons for site visit by bank officials.
- Week 2Module 1:
Unit 3: Objectives of Lending & Credit Administration · 2 hours
Identify the reasons for lending & credit administration. Mention and discuss objectives of lending & credit administration.
Unit 4: Lending and Credit Administration · 2 hours
Discuss lending and credit administration. Mention and explain modalities for lending and credit administration.
- Week 3Module 1:
Unit 5: Lending Appraisals & Decisions · 3 hours
List and discuss the issues involved in the initial evaluation of loan request. Mention and explain the considerations involved in credit analysis.
- Week 4Module 2:
Unit 1: Term Loans & Real Estate Loans · 2 hours
Explain the concept of term loan. Mention the characteristics of term loans. List the uses of term loan.
Unit 2: Working Capital Loans · 2 hours
Discuss the nature of working capital. Explain the working capital loan. Identify the reasons for use of working capital loan.
- Week 5Module 2:
Unit 3: Agricultural Loans · 3 hours
Explain the sphere of agricultural loans. Discuss the risky nature of agricultural loans. Identify and explain factors influencing agricultural lending.
- Week 6Module 2:
Unit 4: Installment Loans & Secured Loans · 3 hours
Discuss the term installment loan. Explain the purpose of installment loans. Mention and explain the benefits of installment loans.
- Week 7Module 2:
Unit 5: Loan Monitoring & Supervision · 3 hours
Discuss the nature of loan monitoring & supervision. Explain loan supervision and control. Discuss the collection procedure of loan repayment.
- Week 8Module 3:
Unit 1: Collateral Security Issues · 3 hours
Discuss bank's claim on collateral security. List and explain forms of property for collateral security. Mention and discuss valuables for collateral security.
- Week 9Module 3:
Unit 2: Credit Insurance · 3 hours
Discuss the whole turnover policy in credit insurance. Explain small company whole turnover policy. Discuss the single risk policy in credit insurance.
- Week 10Module 3:
Unit 3: Export Credit Protection · 3 hours
Identify the forms of risk in foreign trade. Discuss the comprehensive short-term policy in export credit insurance. Explain the excess of loss policy in export credit insurance.
- Week 11Module 3:
Unit 4: Credit Administration · 3 hours
Discuss credit administration. Mention and explain steps for credit administration. Discuss the rationale for credit administration.
- Week 12Module 3:
Unit 5: Credit Investigation · 3 hours
List and discuss the issues involved in appraisal of credit request. Mention and explain the considerations involved in credit analysis. Discuss the assessment of past performance of loan applicant.
- Week 13Module 4:
Unit 1: Loan Work out Situations · 3 hours
Discuss the framework for loan workout programme. Explain the nature of loan workout arrangements. List and discuss critical considerations in loan workout situations.
Preparing for the exam
- Create detailed summaries of each unit, focusing on key terms and concepts.
- Practice analyzing financial statements from Units 2 and 3, calculating key ratios.
- Develop case studies for different loan scenarios, applying principles from Units 1, 4, and 5.
- Review all Tutor-Marked Assignments (TMAs) and their solutions thoroughly.
- Focus on understanding the regulatory framework and compliance requirements for bank lending.
- Create concept maps linking Units 3-5 on risk management and mitigation strategies.
- Practice identifying potential risks and developing mitigation plans for various loan types.
Questions students ask about this course
What is BFN405 about?
This course is designed to give you self-instruction on the rudiments of Bank Lending and Loan Administration. It teaches bank policies on lending, lending procedures, and objectives of lending & credit administration. The course also covers collateral security issues, credit insurance, and export credit protection. It further explains loan workout situations, analysis of financial statements, and asset and liability management in banks.
How many units does BFN405 have?
BFN405, Bank Lending And Loan Administration, has 20 units across 4 modules, over 207 pages of course material. You can read it one unit at a time.
How many credit units is BFN405?
BFN405 carries 2 credit units, at 400 level in Management Sciences.
Is BFN405 hard?
BFN405 is rated intermediate level, with basic mathematical content. It is mostly theoretical work.
How long does BFN405 take to study?
About 156 hours of study, spread across its 20 units.
How is BFN405 assessed?
BFN405 is assessed by Assignments, Tutor Marked Assessments and Final Examination.
What can I do with BFN405?
Loan Officer, Credit Analyst, Bank Manager, Financial Analyst and Risk Manager.