TERMS OF REFERENCE (TOR)

1. Position Title: Credit & Portfolio Management

2. Background

Credit and portfolio management is essential to maintaining a healthy and sustainable lending portfolio. Effective credit management requires appropriate assessment of clients’ financial capacity and creditworthiness, sound loan appraisal and approval processes, continuous portfolio monitoring, effective collections, and timely identification and management of credit risks.

The Credit & Portfolio Management position will support effective management of credit activities and the loan portfolio by ensuring that credit decisions are supported by appropriate analysis, loan performance is monitored, collections are effectively managed, and portfolio quality is maintained.

The position requires a professional with strong credit analysis, risk assessment, portfolio management, analytical, decision-making, negotiation, and problem-solving capabilities.

3. Purpose and Objectives

Purpose

The purpose of the Credit & Portfolio Management position is to support effective credit management and maintain a healthy loan portfolio through sound credit assessment, loan appraisal, portfolio monitoring, collections, and portfolio quality management.

Objectives

The position will be expected to:

• Conduct effective credit and financial analysis of clients.
• Assess clients’ financial capacity and creditworthiness.
• Support sound and well-informed lending decisions.
• Monitor loan performance and portfolio quality.
• Identify credit risks and potential problem accounts in a timely manner.
• Support effective loan collections and recovery activities.
• Maintain appropriate portfolio records and reports.
• Provide accurate credit and portfolio information to support management decision-making.

4. Scope of Work

The scope of work covers the key areas of credit and portfolio management, including:

1. Credit analysis and assessment.
2. Loan appraisal and creditworthiness assessment.
3. Credit risk assessment.
4. Loan monitoring and portfolio management.
5. Portfolio quality monitoring.
6. Loan collections and recovery.
7. Credit reporting and analysis.
8. Client relationship and negotiation.
9. Identification and management of credit-related issues and risks.

5. Key Responsibilities

5.1 Credit Analysis and Assessment

• Conduct detailed credit analysis of loan applications and client financial information.
• Assess clients’ financial capacity, repayment ability, and creditworthiness.
• Review relevant financial and credit information to support lending decisions.
• Identify potential credit risks and weaknesses in loan applications.
• Provide clear and objective credit assessments based on available information.
• Ensure that credit assessments are properly documented and supported.

5.2 Loan Appraisal and Credit Decision Support

• Conduct loan appraisal in accordance with established credit requirements and procedures.
• Evaluate the financial capacity and repayment ability of prospective and existing borrowers.
• Review loan applications and supporting documentation for completeness and accuracy.
• Identify key risks associated with proposed lending decisions.
• Provide recommendations based on credit analysis and risk assessment.
• Support appropriate and informed credit decision-making.

5.3 Portfolio Management

• Monitor the performance and quality of the loan portfolio.
• Track loan repayment performance and identify emerging portfolio risks.
• Review portfolio quality indicators and trends.
• Identify problem loans and accounts requiring additional attention.
• Support actions to maintain and improve portfolio quality.
• Analyze portfolio performance and provide relevant information to management.

5.4 Loan Monitoring

• Monitor loans after disbursement to assess repayment performance.
• Identify early signs of repayment difficulties or credit deterioration.
• Follow up on overdue and at-risk accounts.
• Maintain accurate and up-to-date loan and portfolio information.
• Ensure that portfolio monitoring activities are properly documented and reported.

5.5 Collections and Recovery

• Support effective loan collection and recovery activities.
• Follow up with clients regarding overdue payments and repayment obligations.
• Identify reasons for delayed or missed repayments.
• Engage clients in appropriate discussions regarding repayment arrangements.
• Support the development and implementation of appropriate actions for problem accounts.
• Monitor collection performance and report significant issues affecting portfolio quality.

5.6 Credit Risk Management

• Identify and assess credit risks associated with individual clients and the overall portfolio.
• Monitor emerging credit risks and potential problem accounts.
• Analyze portfolio trends and identify areas requiring management attention.
• Support appropriate risk mitigation measures.
• Provide clear reporting on significant credit risks and portfolio quality concerns.

5.7 Client Relationship and Negotiation

• Maintain professional relationships with clients throughout the credit and loan management process.
• Communicate credit requirements and repayment obligations clearly.
• Conduct negotiations with clients regarding repayment and credit-related matters.
• Handle credit-related client concerns professionally.
• Maintain appropriate records of significant client and credit-related discussions.

5.8 Reporting and Documentation

• Prepare accurate and timely credit and portfolio reports.
• Maintain complete and organized credit and loan documentation.
• Provide credit analysis and portfolio information to support management decisions.
• Report significant credit risks, overdue accounts, and portfolio quality concerns.
• Ensure that credit-related information is accurate, complete, and properly maintained.

6. Required Qualifications

Mandatory Requirements

Candidates must meet one of the following qualification pathways:

Bachelor’s Degree

• Bachelor’s degree in Finance, Accounting, Economics, Business Administration, or a related field.
• At least 5 years of relevant professional experience.

Master’s Degree

• Master’s degree in a relevant field.
• At least 3 years of relevant professional experience.

7. Required Experience

Mandatory Requirements

The candidate must have relevant professional experience in areas such as:

• Credit management.
• Lending.
• Portfolio management.
• Banking.
• Microfinance.
• Loan appraisal.
• Credit assessment.
• Loan monitoring.
• Loan collections.
• Portfolio quality management.

The candidate should demonstrate practical experience in assessing clients' financial capacity and creditworthiness and managing loan portfolio performance.

8. Required Skills and Competencies

Credit and Technical Skills

• Strong credit analysis and risk assessment skills.
• Strong ability to assess clients’ financial capacity and creditworthiness.
• Good understanding of loan appraisal and credit assessment processes.
• Strong knowledge of loan portfolio management.
• Strong understanding of portfolio quality indicators.
• Ability to monitor loan performance and identify emerging credit risks.
• Strong analytical and financial assessment capabilities.

Professional Competencies

• Strong analytical and decision-making skills.
• Good negotiation and client relationship management skills.
• Strong problem-solving abilities.
• Strong reporting and documentation skills.
• Ability to identify and assess credit risks.
• Ability to interpret portfolio performance information.
• Ability to communicate credit findings and recommendations clearly.
• Ability to manage multiple credit and portfolio-related responsibilities.

Core Competencies

The successful candidate should demonstrate:

1. Credit Analysis
2. Credit Risk Assessment
3. Loan Appraisal
4. Portfolio Management
5. Portfolio Quality Monitoring
6. Loan Monitoring
7. Collections and Recovery
8. Financial Analysis
9. Decision-Making
10. Negotiation
11. Client Relationship Management
12. Problem-Solving and Reporting

9. Deliverables / Expected Outputs

The Credit & Portfolio Management position is expected to deliver the following:

Deliverable

Expected Output

Credit Assessments

Clear and well-supported assessments of clients’ financial capacity and creditworthiness.

Loan Appraisals

Complete and accurate loan appraisal and credit assessment documentation.

Credit Risk Assessment

Identification and reporting of key credit risks associated with clients and lending activities.

Portfolio Monitoring

Regular monitoring of loan performance and portfolio quality.

Portfolio Quality

Timely identification of problem accounts and emerging portfolio risks.

Loan Monitoring

Accurate tracking of repayment performance and at-risk accounts.

Collections

Effective follow-up and support for collection and recovery of overdue loans.

Portfolio Reporting

Accurate and timely credit and portfolio reports for management review.

Credit Documentation

Complete, accurate, and properly maintained credit and loan records.

Client Management

Professional communication, negotiation, and relationship management with credit clients.

10. Application / Submission Requirements

Interested candidates should submit:

1. Updated Curriculum Vitae (CV) clearly demonstrating relevant qualifications and professional experience.
2. Cover Letter outlining the candidate’s suitability for the Credit & Portfolio Management position.
3. Copies of relevant academic qualifications and certificates.
4. Relevant professional certifications, where applicable.
5. Relevant professional references, where applicable.

Assessment Criteria

Applications will be assessed based on:

• Relevant academic qualifications.
• Required professional experience.
• Experience in credit management, lending, portfolio management, banking, or microfinance.
• Experience in loan appraisal and credit assessment.
• Experience in loan monitoring and collections.
• Experience in portfolio quality management.
• Credit analysis and risk assessment capabilities.
• Ability to assess clients’ financial capacity and creditworthiness.
• Knowledge of loan portfolio management and portfolio quality indicators.
• Analytical and decision-making skills.
• Negotiation and client relationship skills.
• Problem-solving and reporting abilities.

Only candidates who meet the mandatory qualification and experience requirements will be considered for further assessment.