Introduction to Bank Lending Environment - Online

This course is designed to help users understand the lending aspect of a bank. The course covers the principles of lending, the various forms and types of commercial lending by a bank. An in-depth discussion about the concept of working capital and the various methods of assessing the working capital is provided.

This is an asynchronous eLearning course that can be accessed 24/7 from any internet enabled computer.

Available TodayOnlineUSD$150
Instructional Method:
Self-Study
Level: Basic
CPE Credits: 7

Geared to audience from the Banking sector, this course addresses the essential knowledge requirements of individuals (non-officers to middle management) from Operations, Control, Auditing, Compliance, Operational Risk Management, as well as Information Technology (IT) Security personnel. Service providers to banks will also find this course very relevant in establishing a basis of appreciation of their client's needs, related methods and capabilities.
Students will be able to:
  • Understand the importance of credit in stabilizing the financial system of an economy
  • Know the principles of lending and the eligibility criteria for bank lending
  • Understand the concept of working capital and the various methods of assessing the working capital
  • Enumerate the various types and forms of lending (vis-à-vis lending against shares, real estate, and term loans).
Credit and Economic Growth
  • The effect of credit and inflation on the economic growth of an economy
  • The various factors responsible for creating a credit crunch in the economy and its consequences
  • The importance of credit in stabilizing the financial system

Commercial Lending

  • The important functions of commercial banks viz. lending and accepting deposits
  • The principles of lending and the eligibility criteria for grant of loans
  • The three C's of credit and the enhanced 3C's of credit
  • The different types of loans and advances that are granted by banks
  • The various characteristics of a good collateral

Working Capital

  • The concept of working capital and net working capital
  • The concept of current assets and current liabilities
  • The method to work out optimum working capital
  • The various methods of assessing the working capital
  • The kinds of credit limits available under working capital

Bills and Letters of Credit

  • The various types of bills and letters of credit
  • The methodology to scrutinize bill

Lending Against Shares

  • The concept of market capitalization
  • The various types of ratios
  • Operations of primary and secondary market

Lending Against Real Estate

  • The challenges faced by the housing finance industry
  • The different types of housing loans
  • The importance of credit appraisal before disbursing a housing loan
  • The different types of mortgages

Term Loan

  • The components of capital
  • The various types of leverage
  • The concept of cost of capital and valuation
  • The types of long-term sources of fund

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