Course Overview
This programme is designed to provide participants with a comprehensive understanding of both personal and commercial financing principles and practices. It covers key concepts related to financial planning, credit evaluation, lending processes, and financing options available to individuals and businesses.
Participants will explore how financial institutions assess creditworthiness, structure financing solutions, and manage lending risks. The programme also highlights practical aspects of loan management and repayment structures.
Course Objectives
Upon completion of this programme, participants will be able to:
- Understand the fundamental principles of personal and commercial financing
- Identify and evaluate different financing products and solutions for individuals and businesses
- Assess creditworthiness using key lending criteria and financial indicators
- Apply basic principles of loan structuring, repayment, and interest calculations
- Analyse financing risks and understand risk mitigation approaches
- Make informed financing decisions based on financial needs and repayment capacity
- Understand regulatory and compliance considerations in financing activities
Learning Outcomes
At the end of the training, participants will be able to:
- Explain the key concepts and principles of personal and commercial financing
- Identify various types of financing products available for individuals and businesses
- Assess creditworthiness using basic financial and non-financial criteria
- Apply fundamental loan structuring concepts, including interest rates and repayment schedules
- Analyse financing risks and suggest appropriate mitigation strategies
- Evaluate suitable financing options based on different financial needs and scenarios
- Demonstrate understanding of regulatory and compliance requirements in financing decisions
Target Audience
This programme is designed for:
- Credit officers, loan officers, and relationship managers
- Entrepreneurs and business owners seeking financing for business growth
- Individuals interested in understanding personal finance and borrowing decisions
- Finance and accounting personnel involved in credit evaluation and financial planning
- Professionals seeking to strengthen their knowledge of personal and commercial lending practices
Duration & Training Hours
- Duration: 2 Days
- Total Training Hours: 14 Hours
- Day 1: 7 hours
- Day 2: 7 hours
Training Methodology
This programme adopts a blended, practical, and outcome-based learning approach designed to strengthen both conceptual understanding and applied skills. It incorporates:
- Interactive lectures to explain core financing concepts and principles
- Case studies based on real financing scenarios in personal and commercial
- Practical exercises to reinforce understanding of loan structures, interest, and repayment calculations
- Group activities to promote collaborative problem-solving and decision-making
- Scenario-based learning to develop credit evaluation and financing decision skills
- Real-world examples to enhance workplace relevance
Course Content
Day 1: Principles and Practices of Personal and Commercial Financing (7 hours)
i. Introduction to Personal and Commercial Financing
- Overview of financing in the financial system
- Differences between personal and commercial financing
- Role of banks and financial institutions in lending
ii. Types of Financing Products
- Personal loans, credit cards, mortgages, overdrafts
- Business loans, term loans, trade finance, working capital facilities
- Secured vs unsecured financing
iii. Credit Assessment and Creditworthiness
- Key factors in credit evaluation (5Cs of credit)
- Income, cash flow, and financial statement analysis
- Credit scoring and risk profiling basics
Day 2: Principles and Practices of Personal and Commercial Financing (7 hours)
i. Loan Structuring and Repayment Mechanisms
- Loan tenure, interest rates (fixed vs floating)
- Repayment schedules (amortisation, bullet payments)
- Fees, charges, and effective cost of borrowing
ii. Interest Rates and Financing Costs
- Simple vs compound interest
- Flat rate vs reducing balance method
- Cost of borrowing and affordability analysis
iii Introduction to Financing Risks
- Credit risk, market risk, and liquidity risk
- Borrower default risk and mitigation basics
- Role of collateral and guarantees
iv. Case Study and Practical Application
- Simple personal and business financing scenarios
- Group discussion and decision-making exercise
Q&A and recap of key learning points
