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Basics of Credit Management- A Practical Approach + Quiz

Name: Basics of Credit Management- A Practical Approach + Quiz
Rating: 4.0 (187 reviews)

Learn Fundamentals of Finance and Credit Management for Bankers and Financial Analysts with MCQs

Created byZENITH ACADEMICS

Last updated 5/2025

English

What you'll learn

Understanding Banking Risks and Lending Principles.
Understanding Due Diligence in Credit.
Understanding Feasibility & Viability Study.
Understanding the legal aspects of Sole Proprietorship, Partnership Firm & Company.
Understanding the Borrowing Powers of a Company.
Understanding Financial Statements.
Understanding Balance Sheet Structure and its concepts.
Understanding Income Statement.
Learning how to Analyse Income Statement.
Understanding Ratio Analysis and Learning how to Analyse a Financial Statement. Taking decisions by applying bank's benchmark ratios.
Learning Computation of Working Capital Loan by Applying Turnover Method and MPBF Methods by a banker.
Understanding Term Loan Characteristics.
Understanding DSCR Concept in whole and applying bank's benchmark ratio for decision making.
Understanding Break Even Analysis.
Learning how to prepare Depreciation Schedule.
Learning how to calculate Repayment Schedule.
Learning how to calculate Insurance Premium.
Learning how to process a Term Loan through case studies.
Learning how to take credit decisions by applying bank's benchmark ratios.
Test your learning through loads of MCQs.

Course content

11 sections • 46 lectures • 5h 41m total length

Course Introduction7:07
Course Curriculum
Module# 1- Principles of Lending (6 videos- total length- 37.28 minutes)
1) Banking Risks & Lending Principles- 6.37 minutes
2) Due Diligence in Credit- 2.02 minutes
3) 3 C’s of the Borrower- 9.59 minutes
4) 6 P’s of the Borrower- 3.21 minutes
5) MASTDAY Principle on Security- 9.01 minutes
6) Feasibility & Viability Study- 7.08 minutes
7) Self-Assessment Test- 20 MCQs
Module# 2- Types of Borrowers ((6 videos- total length- 35.73 minutes)
1) Introduction- 3.22 minutes
2) Individual Borrower- 2.21 minutes
3) Partnership Firms- 7.04 minutes
4) HUF- 3.29 minutes
5) Company Features- 12.40 minutes
6) Hybrid Companies- 7.57 minutes
7) Self-Assessment Test- 20 MCQs
Module# 3-Borrowing Powers (1 video- total length- 8.31 minutes)
1) Borrowing Powers of a Company- 8.31 minutes
2) Self-Assessment Test- 10 MCQs
Module# 4- Understanding Financial Statements (1 video- total length- 5.37 minutes)
1) What are Financial Statements- 5.37 minutes
2) Self-Assessment Test- 10 MCQs
Module# 5 – Understanding Balance Sheet (3 videos- total length- 25.35 minutes)
1) Balance Sheet Structure & Concepts- 9.25 minutes
2) Assets- Fixed Assets- 7.56 minutes
3) Other Assets- 8.54 minutes
4) Self-Assessment Test- 45 MCQs
Module# 6- Income Statement ( 2 videos- total length- 15.71 minutes)
1) What is Income Statement- 6.35 minutes
2) Analysis of Income Statement- 9.36 minutes
3) Self-Assessment Test- 15 MCQs
Module# 7- Ratio Analysis & Interpretation (7 videos- Total Length- 59.77 minutes)
1) Introduction to Ratios- 3.26 minutes
2) Liquidity Ratios- 11.46 minutes
3) Practical Work out With Liquidity Ratios- 8.14 minutes
4) Solvency Ratios- 7.20 minutes
5) Turnover Ratios- 11.20 minutes
6) Profitability Ratios-14.39 minutes
7) Interpretation of Ratios- 4.12 minutes
8) Self-Assessment Test- 80 MCQs
Module#8- Appraisal of Working Capital Loan (5 videos- total Length- 41.47 minutes)
1) What is Working Capital Loan- 4.27 minutes
2) Working Capital Cycle- 7.11 minutes
3) CC Limit, Margin & Drawing Power- 10.05 minutes
4) Turnover Method- 6.56 minutes
5) MPBF Methods with Case Study- 13.48 minutes
6) Self-Assessment Test- 25 MCQs
Module#9- Appraisal of Term Loan (7 videos- total length- 53.58 minutes)
1) Characteristics of Term Loans- 10.34 minutes
2) Calculation of Depreciation- 9.04 minutes
3) Drawing Repayment Schedule- 3.21 minutes
4) Calculating DSCR- 9.09 minutes
5) Security Coverage Ratio- 4.38 minutes
6) Break Even Analysis- 8.07 minutes
7) Break Even Case Study- 9.45 minutes
8) Self-Assessment Test- 35 MCQs
Module#10- Term Loan Case Study (7 videos- total length- 43.21 minutes)
1) Technical & Financial Parameters- 5.34 minutes
2) Project Cost & Means of Finance- 4.51 minutes
3) Working of Various Schedules- 7.49 minutes
4) Profit & Loss Account, DSCR & Reserves & Surplus- 11.34 minutes
5) Cash Flow Statement- 7.13 minutes
6) Balance Sheet- 4.17 minutes
7) Analysis of the Case Study- 3.23 minutes

Banking Risks & Lending Principles6:45
In this lecture, you will know the Basic function of Banks and the underlying risks through a Banking Model, the types of Banking Risks, why Credit Risks are the riskiest, the fundamental Banking Principles, and the significance of Bank's Lending Policies.
Due Diligence in Credit2:02
In this lecture, you will learn Credit Due Diligence at the Pre-Sanction Stage, Sanction and Disbursement Stage, and Post Disbursement Stage to ensure and maintain the quality of the Assets.
3 C’s of the Borrower9:59
In this lecture, you will know the 3 C’s of the Borrower, i.e. the Character, Capacity & Character of the Borrower. It explains how to assess the integrity of the borrower through verification of KYC, studying borrower’s Credit History by understanding Credit Bureau Reports, verification of defaulter’s List, IT Returns, GST Returns, Other Statutory Returns and also the understanding reputation of the borrower and his family. It also explains how to study the Competence of the borrower in respect of Technical Knowledge, Business Knowledge, Managerial Competence, Business Reputation & Contacts, and Succession Plan. Finally, it explains how to study the financial strength of the Borrower by drawing up his Net Worth
6 P’s of the Borrower3:21
In this lecture, you will know the fundamental 6 Principles of Lending i.e Principle of Safety of Funds, Principle of Profitability, Principle of Liquidity, Principle of Purpose, Principle of Risk Spread, and Principle of Security.
MASTDAY Principle on Security9:01
In this lecture, you will learn the Principle of Security with a detailed explanation of MASTDAY, that is Principle of Marketability, Ascertainability, Stability of Value, Transferability of Title of Ownership, and Durability. It also discusses the classification of assets and also charged assets.
Feasibility & Viability Study7:08
In this lecture, you will learn the Feasibility and Viability Study of the Borrower’s proposal. You will know the Technical Feasibility of the Project, The Market Study, Legal Assessment, Financial Viability, Risk Assessment, and SWOT Analysis.
Self Assessment Test

Introduction3:22
This lecture discusses the broad classification of Borrowers- Individual Borrowers comprising Individuals and Proprietorship Firms and Group of Individuals comprising Partnership Firms, HUF and also Corporates comprising Pure Corporates like Private and Public Companies and Hybrid Companies like One Person Company and Limited Partnership Firms.
Individual Borrower2:21
In this lecture, you will learn about Individuals seeking Loans and Individuals seeking Loans for Business as Sole Proprietorship Firms.
Partnership Firms7:04
In this lecture, you will learn detailed concepts of Partnership and Clayton’s Principle. You will also how bankers should deal with Partnership Firms.
HUF3:29
In this lecture, you will know the fundamental concepts of the Hindu Undivided Family and why banks should not grant any loans to HUF.
Company Features12:40
In this lecture, you will learn the characteristics of Joint Stock Companies, important documents of a company like Certificate of Incorporation, Memorandum of Association, Articles of Association, and Certificate of Commencement of Business. You will also learn the difference between a Private Limited Company and a Public Limited Company.
Hybrid Companies7:57
In this lecture, you will learn what are Hybrid Companies like Person Company and Limited Partnership Firm. You will also learn how their similarities and differences with a Sole Proprietorship Firm, Partnership Firm, and Private Company.
Self Assessment Test

Balance Sheet Structure & Concepts9:25
This lecture, tells you the Balance Sheet Structure and its various concepts. It also discusses in detail the Liabilities side of the Balance Sheet with examples.
Assets- Fixed Assets7:56
In this lecture, you will learn about Fixed Assets. You will learn in detail the concept of Gross Block and Net Block. You will also learn what is Depreciation and how to calculate Depreciation under SLM and WDV.
Other Assets8:54
In this lecture, you will learn in detail about Intangible Assets, Investments, and Current Assets. You will know the difference between Tangible Assets and Intangible Assets. Under Current Assets, you will also learn about the Operating Cycle.
Self Assessment Test

What is Income Statement6:35
In this lecture, you will learn all about an Income Statement and how it is prepared. You will come to know the fundamentals of Manufacturing & Profit & Loss Account in case of a Manufacturing Firm and also Trading Account and Profit & Loss Account in case of Trading Firm.
Analysis of Income Statement9:36
In this lecture, you will experience a Hands-on Income Statement and its Analysis step by step. At the end of the lecture, you will be able to draw up and analyze an Income Statement on your own.
Self Assessment Test

Introduction to Ratios3:26
This lecture explains what are ratios and their importance. It also tells you the different types of ratios for example Liquidity Ratios, Solvency Ratios, Turnover Ratios, and Profitability Ratios.
Liquidity Ratios11:46
In this lecture, you will learn the concepts of Liquidity Ratios. You will learn in detail about the Current Ratio, Quick Ratio, and also Benchmark ratios of Banks. You will also especially learn about the relationship between the Current Ratio and Net Working Capital.
Practical Work Out With Liquidity Ratios8:14
In this lecture, you will have a practical hands-on experience with the Liquidity Ratios case study. At the end of the lecture, you will be able to calculate the Current Ratio & Quick Ratio from the Balance Sheet and analyze them on your own.
Solvency Ratios7:20
In this lecture, you will know the concepts of Solvency Ratio and learn about Proprietary Ratio, TOL/TNW Ratio, and also Debt-Equity Ratio and the benchmark ratio of the banks. Here you will have practical hands-on experience with Proprietary Ratio, TOL/TNW Ratio, and also Debt-Equity Ratio case study.
Turnover Ratios11:20
In this lecture, you will learn the concepts of Turnover Ratios and learn how to calculate Stock Turnover Ratio, Debtor’s Turnover Ratio, and Creditor’s Turnover Ratio. You will also have practical hands-on experience with Liquidity Ratios. At the end of the lecture you will be able to work out the Stock Turnover Ratio, Debtor’s Turnover Ratio, and Creditor’s Turnover Ratio from the Balance Sheet and the Income Statement confidently.
Profitability Ratios14:39
In this lecture, you will how to calculate the various Profitability Ratios like Return on Sales Ratios, Return on Investment Ratios. Under Return on Sales Ratios, you will learn Gross Profit Ratio, Net Profit Ratio, Operating Ratio, and Operating Profit Ratio. Under Return on Investment Ratios, you will learn Return on Asset Ratio, Return on Capital Employed, and Return on Equity. You will have Practical experience of working on the excel sheet and work out the ratios yourself.
Interpretation of Ratios4:12
In this lecture, you will learn how to analyze and interpret the various ratios that we have worked out earlier and take credit decisions.
Self Assessment Test

What is Working Capital Loan4:27
In this lecture, you will learn the concept of working Capital loans. You will also learn the Concept of the Working Capital Gap and the different methods of assessment. You will briefly learn about the Turnover Method, MPBF method, and the Cash Budget Method of assessment.
Working Capital Cycle7:11
In this lecture, you will learn the most important concept of the Working Capital Cycle and also Gross Operating Cycle and Net Operating Cycle. You will also learn how to calculate the Holding Period of Stocks, Debtors Collection Period, and Creditors Payment Period.
CC Limit, Margin & Drawing Power10:05
In this lecture, you will learn the interrelationship between Cash Credit Limit, Margin & Drawing Power. You will also learn how to calculate the value of stocks and receivables through a live case study. In the end, you will exactly know how to calculate the Cash Credit Limit by working out the Margin and the Drawing Power all by yourself.
Turnover Method6:56
In this lecture, you will know how to assess a working capital limit by applying Turnover Method or the Nayak Committee Method. You will also know the pitfalls of over financing and under financing.
MPBF Methods with Case Study13:48
In this lecture, you will learn the concept of MPBF or Tandan Committee Method of computation of Working Capital Limit under the 1st method,2nd Method, and the 3rd Method. You will also have a practical hands-on experience of working out MPBF Case study in an excel sheet to hone your understanding.
Self Assessment Test

Characteristics of Term Loans10:34
In this lecture, you will learn the purpose of Term Loan, 360-degree appraisal of the Term Loan, Product Life Cycle, Cost of the Project, Means of Finance, Funding Pattern & the risks of High Debt to Equity.
Calculation of Depreciation9:04
In this lecture, you will learn the underlying purpose and meaning of depreciation. You will also learn how to calculate depreciation using SLM & WDV Methods
Drawing Repayment Schedule3:21
In this lecture, you will practically learn how to draw up the Repayment Schedule of the Term Loan.
Calculating DSCR9:09
In this lecture, you will learn the concept of DSCR and also practically learn how to calculate Gross DSCR and Net DSCR. You will also learn the acceptable benchmark DSCR of banks.
Security Coverage Ratio4:38
In this lecture, you will learn the importance of Security Coverage Ratios and also how to work out Asset Coverage Ratio and Collateral Coverage Ratio. You will also learn the acceptable benchmark ratio of banks.
Break Even Analysis8:07
In this lecture, you will learn the concept of Break-Even and the inter-relationship of Cost of the Product, Its Volume of Sales, and its resultant profits or CVP. You will also learn the relevance of the Break-Even Point and the Margin of Safety.
Break Even Case Study9:45
In this lecture, you will see how the Break-Even Sales, Break-Even Point, and the Margin of Safety are practically worked out through a case study in excel format.
Self Assessment Test

Requirements

No prior knowledge required for enrolling into the course. Just stay focused while learning and take notes.
This course is specially designed for those who have a thirst for quick knowledge but avoid books.
An internet connection and a Laptop/PC/Mobile/Tablet.

Description

Welcome to the World of Credit Management Excellence!

Do financial jargons like Balance Sheet Analysis, Profitability Analysis, Ratio Analysis, DSCR, Working Capital Assessment, and Term Loan Appraisal seem like a labyrinth to you? If deciphering the intricacies of banking credit and finance is on your agenda, look no further! Whether you're a seasoned Credit Officer navigating the complexities of finance or a budding finance enthusiast, our course, "Basics of Credit Management - A Practical Approach," is tailor-made for you.

Embark on a transformative journey that will not only bolster your understanding of credit fundamentals but also equip you with the skills to independently unravel financial statements and conduct meticulous analyses. This course is a seamless blend of theoretical concepts and hands-on practicality, ensuring that you not only grasp the essentials but also apply them with confidence.

Why Choose Our Course?

Focus on Practical Banking Concepts: Immerse yourself in a curriculum designed to provide practical insights into banking, ensuring you are well-versed in real-world scenarios.
Thorough Legal Understanding: Delve into the legal intricacies associated with credit management, gaining a comprehensive understanding of the legal landscape.
Finance Concepts with Case Studies: Grasp finance concepts through real-world case studies, enhancing your ability to apply theoretical knowledge to practical situations.
Step-by-Step Excel Calculations: Navigate the world of financial statements and ratios with ease through step-by-step Excel calculations, empowering you to make informed credit decisions aligned with industry benchmarks.
Decision-Making Proficiency: Hone your skills in evaluating loan proposals based on your findings and the financial benchmarks set by leading financial institutions.
Self-Assessment through MCQs: Reinforce your learning with module-end Multiple Choice Questions (MCQs) that serve as a self-assessment tool, allowing you to gauge your understanding and download a Course Completion Certificate upon successful completion.

What Sets Us Apart?

Join a course that boasts the highest global ratings on platforms like Udemy, Alison, and Skill Success, with an impressive average rating of 4.54/5.00. Don't just take our word for it; hear what our students have to say:

Edy Paul, UK: "Accurate course description, clear explanations, valuable information, engaging delivery, and helpful practice activities."
Sagar Pandey, India: "Detailed and clear about the basics of credit management. Just loved the course."
Timothy Makuka, South Africa: "Amazing experience and absolutely engaging. Will recommend to my colleagues."
Regina, USA: "Loved the short and clear lectures. Easy to understand. Keep it up!"

Course Overview:

Delve into 10 comprehensive modules, each packed with lectures tailored to enhance your understanding:

Principles of Lending: Uncover banking risks, due diligence, and the crucial principles that underpin lending decisions.
Types of Borrowers: Navigate legal aspects associated with individual business, sole proprietorship firms, partnership firms, public and private limited companies, one-person companies, and limited liability companies.
Borrowing Powers of Companies: Explore the exclusive module dedicated to understanding the borrowing powers of companies.
Financial Statements: Decode different financial statements, unraveling their intricacies.
Balance Sheet Concepts: Master the structure and interrelationships of balance sheets, along with the calculation of reserves, surplus, depreciation, and more.
Income Statement Analysis: Dive into income statements with detailed analyses, backed by examples and case studies.
Ratio Analysis: Explore liquidity, solvency, turnover, and profitability ratios through hands-on case studies in Excel.
Working Capital Loan Assessment: Grasp concepts like working capital, the working capital cycle, and assessment methods with real-world case studies.
Term Loan Appraisal: Understand the nuances of term loans, depreciation, repayment schedules, DSCR calculation, security coverage ratio, and break-even analysis.
Term Loan Case Study: Conclude the course with a practical case study, integrating project cost, means of finance, various schedules, profit and loss accounts, DSCR, reserves and surplus, cash flow statements, and balance sheets.

MCQs for Self-Testing:

Evaluate your understanding with MCQs at the end of each module, providing a valuable self-assessment tool. Upon successful completion, download your Course Completion Certificate and take the first step toward mastering credit management.

Live Support:

Our commitment doesn't end with the course. In times of difficulty, reach out for live support. I am here to guide you, ensuring you traverse your journey with confidence.

Your Journey Starts Here:

Explore our demo videos, witness the richness of content, and make an informed decision. Join us inside the course, where we promise to demystify the world of credit management and empower you to thrive in your financial endeavors.

See you inside the course!

Who this course is for:

This course is ideally suited for bankers and finance professionals who want to rise in their career
This course is for those individuals who have discovered their weakness & gaps in knowledge and skills and wish to overcome them.
This course is also suited for students of commerce and finance to develop their insights and skills in banking

Basics of Credit Management- A Practical Approach + Quiz

What you'll learn

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Course content

Introduction to the Course1 lecture • 7min

Module# 1- Principles of Lending6 lectures • 38min

Module# 2- Types of Borrowers6 lectures • 37min

Module# 3-Borrowing Powers of a Company1 lecture • 9min

Module# 4- Understanding Financial Statements1 lecture • 6min

Module# 5 – Understanding Balance Sheet3 lectures • 26min

Module# 6- Income Statement2 lectures • 16min

Module# 7- Ratio Analysis & Interpretation7 lectures • 1hr 1min

Module#8- Appraisal Of Working Capital Loan5 lectures • 42min

Module#9- Appraisal of Term Loan7 lectures • 55min

Requirements

Description

Who this course is for: