Academy

Lending Policy

The policy behind the lending: writing a loan policy, pricing fees and interest, appraising with the 5 Cs, and managing delinquency and PAR.

Pricing a loan: fees, interest and penalties

The price of a loan is more than its interest rate. It is the fees, the interest method, the penalties and the repayment period all taken toget

A new loan product should never start with "let's launch a new loan." It should start with a member need you have actually observed, and end wi

Loan protection, often called credit-life cover, clears a member's outstanding loan if they die or become permanently disabled. It protects the

A loan policy is the written rulebook for how your SACCO lends money. It sets out what you lend, to whom, on what terms, and who can approve it

Appraising a loan means checking whether a member can really repay before you lend. The classic framework is the 5 Cs of credit, used by lender

Delinquency is when loan repayments fall behind schedule. Managing it well protects your income and your members' savings. The key measure is P