MVL | Course Details

Commercial Lending

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Commercial Lending

This course will enable you to understand commercial lending and enrich your knowledge about various related products and services.
The course is focused on the needs of professionals wishing to acquire knowledge of commercial lending in order to enable them to provide
technological solutions to banking Industry.

Who should attend:

Professionals, project managers, business analysist, software developers, testers, intending to work in commercial banks or in software companies providing solutions in commercial lending in western countries.

Course contents


  • Concept of lending and lending related credit risk
  • Twin goals of lending
  • Risk management policy and credit policy
  • Brief understanding of loan life cycle: from origination till closure
  • Credit risk management
    • Limits, collateral, guarantors, derivatives, on-balance sheet netting
  • Loan classification based on
    • Purpose
    • Usage i.e. revolving/non-revolving
    • Security i.e. secured/unsecured
    • Interest type
    • Method of repayment
    • Currencies
    • Business type and size
    • Setting up/working capital


Loan origination

  • Credit risk assessment
  • Five “C”s of good credit and 5 “C”s of bad credit
  • Qualitative analysis
  • Quantitative analysis
  • Credit rating
  • Credit scoring
    • Application scoring
    • Behavioral scoring
  • Credit rating vs. credit scoring
  • Internal scoring vs. external scoring
  • Risk based pricing and methods of computing interest
    • Risk based pricing
    • Interest rate types: fixed, variable/floating, tiered/stepped, blended, LTV based, index-based rates
    • Prime Lending Rate (PLR) / LIBOR / LIBID / LIMEAN / MIBOR
  • Loan underwriting/sanction terms
    • Covenants – positive covenants / negative covenants
    • Using covenants for risk mitigation


Credit execution and administration

  • Loan documentation: loan covenants/terms
  • Concept of drawing power/loan availability
  • Loan monitoring and review


Loan products and loan processes in detail

  • Revolving loans/non-revolving loans
  • Term loan, project loan bridge loan
  • Open credit lines and asset-based loans
  • Working capital loans: overdraft, cash credit
  • Pre-shipment loans/post-shipment loans
  • Bill discounting and bill purchase
  • Factoring, reverse factoring, forfaiting
  • Letters of credit/bank guarantees/standby letters of credit
  • Introduction to Incoterms/UCPDC/eUCP/URC/URDG
  • Securitization, mortgage backed securities, asset backed securities, pass-through-certificates, collateralized debt obligations, collateralized loan obligation, collateralized mortgage obligation
  • Capital market syndication


Loan collection and recovery

  • Collection
  • Recovery process
  • Repossession
  • One-time settlement


Problem loan management

  • Prudential norms/delinquency
  • Problem loan management process


Overview of loan/credit risk related regulation

  • Basel I/II/III


Banking arrangements

  •  Multiple banking/consortium banking
  • Loan syndications


Overview of loan regulation in USA

  • Equal Credit Opportunity Act
  • Fair Lending Act
  • Truth in Lending Act
  • Fair Debt Collection Practices Act
  • Regulations from other geography UK

Download Brouchure
Delivery mode
Classroom and Live Virtual Classroom (LVC) Mode
Approx 12 hours of comprehensive learning
Course level
Foundation level
Course Price
Indian-13,000+18%GST; Foreign-USD 425

Contact US

MVL Consulting Private Limited

Address : #17, Laxman Villa Condominium, Paud Road, Pune, Maharashtra 411038 India 

Mobile: +91 - 9764835350 / +91 - 9168435350

Email-id : /

CIN No. : U31909MH1996PTC100429


Contact for Inhouse Programs

Head- Learning and Development

Name : Ms. Deepali Joshi

Phone : +91-9168 435 350

Email-id :