Training & Capacity Building : Microfinance Courses
 
Financial Management
Course I Principles for successful Microfinance
Course II Delinquency Measurement & Control, Interest Calculation & Setting
Course III Accounting for Microfinance Institutions
Course IV Financial Analysis for Microfinance Institutions
EDA suggests the above chronology for taking courses under financial management.
 
Operations Management
Course V Product Development for MFIs
Course VI Improving Operating Efficiencies in MFIs
Course VII Management Information System for Microfinance Institutions
Course VIII Planning with Microfin: A course in financial projections
 
Operations Management
Course IX Operational Risk Management for MFIs
Course X Internal Audit
 
Social Performance Management
Course XI Operational Risk Management for MFIs
 
Others
Course XII Credit Appraisal of Microfinance Institutions: A course for Bankers
Course XIII Use of a Risk Rating Instrument
Course I: Principles for successful Microfinance (EDA module)
 
Course Abstract
In order to facilitate the uptake of active microfinance by potential organisations, this 3 day course has been designed with help of lectures and case studies to make the participants understand the scope and potential of microfinance, study various microfinance models, and then design a microfinance programme replete with all the instructional design components.

Course Objectives

Understand the basic principles on which microfinance is organised
 
Likely impact of microfinance principles on MFIs
 
Microfinance models and characteristics
 
Designing a microfinance programme - client identification, product design, information systems, human resource and financing

Course Length: 3 days

Course II: Delinquency Measurement & Control, Interest Calculation & Setting (CGAP module)
 
Course Abstract

Based on the premise that MFIs have to be sustainable for long-term impact, DQ/IR concentrates on two areas that are especially important for MFI managers: controlling delinquency and defaults and determining a sustainable interest rate. During this 3 day course, participants learn to determine causes and costs of delinquency, to measure and control arrears, to calculate the costs of credit for clients, among other skills, through exercises, group activities and case study analysis.

Course Objectives

Causes and costs of delinquency
 
Measuring & controlling delinquency
 
Responding to a delinquency crisis
 
Interest rates and microfinance
 
Setting sustainable interest rates
 
Understanding effective interest rates
 
Costs of credit for the borrower
 
Using new skills and knowledge

Course Length: 3 days

Course III: Accounting for Microfinance Institutions (CGAP module)
 
Course abstract

Based on the premise that MFIs have to be sustainable for long-term impact and that sound accounting is one of the pillars of financial health for an MFI, the Accounting course introduces MFI managers to the basics of accounting and how to create the most commonly used financial statements like the Balance Sheet, the Income Statement, and the Chart of Accounts. During this 3 to 4 day course, managers gain an understanding of accounting principles, methods and procedures through exercises, group activities and the accounting game "Balancing Act".

Course Objectives

Introduction to accounting definitions, key principles and applicability to MFIs
 
Financial statements, portfolio report overview
 
Recording and summarizing transactions
 
Learning how to account for donor funds, loan loss provisions and reserves and interest revenue
 
Creating more appropriate, transparent and accurate financial statements
 
Developing institutional action plans

Course Length: 4 days

Course IV: Financial Analysis for Microfinance Institutions (CGAP module)
 
Course Abstract

In order to create a sustainable institution, MFI managers need to have the skills to analyze the financial health of their MFI. This 4-day course provides participants with an understanding of the different ratios used by microfinance institutions, what they mean, and how they can be used to keep track of an institution's financial performance over time. The analysis is based on financial statements that reflect management needs for clear organized financial information. Participants learn how to format financial statements for decision-making, adjust for inflation and subsidies, measure portfolio quality, efficiency and profitability and to choose strategies to reach sustainability.

Course Objectives

Introduction to financial statements
 
Overview of accounting
 
Financial statement formats
 
Overview of financial analysis
 
Portfolio quality analysis
 
Analytical adjustments
   
Efficiency and profitability analysis
 
Use of ratios for managerial analysis

Course Length: 4 days
Course V: Product Development for Microfinance Institutions (CGAP module)
 
Course Abstract

The need to develop increasingly flexible and responsive financial products constitutes perhaps the most compelling challenge facing the microfinance industry today. In response to this growing need, a number of donors, practitioner networks, and projects are in the process of developing operational tools that practitioners can use to design demand responsive microfinance products. This four to six day course covers both the process of developing a new product (market definition, market research, product proto-type, costing and pricing, pilot testing, roll-out, marketing, lifecycle management, etc.) as well as the impact of introducing new products on the MFI (human resources, corporate culture, operations and systems, financial results, operating results, etc.).

Course Objectives

Overview of product characteristics and the development process
 
Assessment of institutional capacity for product development
 
Client oriented market research techniques
 
Development of product prototypes
 
Product costing: Activity Based Costing
 
Strategies and factors for product pricing
   
Pilot testing and launch

Course Length: 4 days

 

   EDA's Work