Handout 4.2.

Sample Job Descriptions Individual Lending Toolkit for Credit Managers 1

Offices in: Kenya, Uganda and India

Associates in: Benin and Guatemala

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info@MicroSave.org

Handout 4.2 Sample Job Descriptions

Job Title: Chief Credit Manager/Head of Credit

The chief function of the Head of Credit is to plan, coordinate, control and direct all lending
operations of the MFI, in such a way as to minimise risk in lending, and ensure profitable
lending. He or she reports to the Chief Executive Officer.

Main Duties and Responsibilities

Risk Management
• As Credit Risk Owner, identifies, mitigates, and monitors risks in credit function

Planning and Development

• Plans and initiates strategies for portfolio development and recovery of loans.
• Conducts market surveys and identifies new and viable markets for lending business.
• Initiates plans for recruitment, training and development of Credit Officers in
accordance with the loans portfolio development and makes recommendations to the
Human Resources Manager.
• Reviews lending policies and procedures on a regular basis and submits appropriate
improvement plans and strategies.
• Coordinates all recovery activities and ensures prompt recovery.

Operations
• Monitors and controls the performance of all loans, and overdrafts including staff loans.
• Monitors and controls the appraisal performance of Credit and Recovery Officers and
makes recommendations to the Human Resources Manager.
• Compiles, disseminates and monitors implementation of lending policies, procedures
and Central Bank regulations, (especially regarding classification and recovery of
outstanding portfolio).
• Ensures that proper securities are taken on and registered in accordance with letters of
Credit Officers.
• Analyses arrears rate on monthly basis.
• Follows up evolution of arrears rate on a weekly basis.
• Devises, and keeps to, roster for regular visitation of branches in order to assess lending
performance.
• Crosschecks and confirms accuracy of all date, facts and figures to be presented to the
CEO.
• Monitors the application of loan accounting system in all branches and ensures that loan
accounts balance, commissions and interest are properly calculated.
• Submits monthly credit statistics and reports to the CEO.
• Submits quarterly reports to CEO on overall lending performance.

Job Title: Credit Manager

The chief function of the Credit Manager is to assist the Head of Credit/Chief Credit Manager in
the planning, coordination and control of lending operations. He or she deputises for the Chief
Credit Manager whenever called upon to do so.

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Handout 4.2. Sample Job Descriptions Individual Lending Toolkit for Credit Managers 2

Main Duties and Responsibilities

• Monitors and reports on the implementation of loan policies and procedures.

• Analyses portfolio performance on monthly basis and submits
recommendations to the Credit Manager.
• Ensures that loans accounts in all branches are balanced and, where necessary,
corrective action is taken.
• Compiles periodic returns on lending business.
• Compiles summary of key information and date on each loan to be submitted to
Head Office.
• Prepares and sends all terms of offer on each loan cleared by the Head Office
Credit Committee to the Branch.
• Follows up all loans approved by Head Office with occasional site inspection.
• Files and maintains all records and information on lending operations.
• Regularly inspects the credit departments in branches.
• Performs other duties that may be assigned from time to time.

Job Title: Credit Officer

The chief functions of a Credit Officer is to identify new customers; appraise and assess project
applications; prepare assessments and recommendations for Head Office; and educate loanees
as to their responsibilities for repayment of loans.

Main Duties and Responsibilities

• To interview applicants and to explain the lending procedures and requirements of the
Bank to the potential customers.
• To receive loan applications.
• To assess customer's applications, visit the business premises as well as the residence to
appraise the financial situation of the business/project.
• To advise customers as to the documents and financial, reports required by the Bank to
process their loan applications.
• To process customers application and prepare a financial and social data (cash flow,
balance sheet) for submission to Head Office.
• To ensure that all required documents (security documents, loan contract etc) are
complete and signed by the customer.
• To disburse loans according to the decision of the Credit Manager.
• To follow up all loans outstanding he/she is responsible for. This includes a regular
supervision of all outstanding loans to ensure proper utilization of loan funds as well as
recovery.
• To ensure strict and continuous follow-up of his/her outstanding portfolio by checking
the up-dated arrears list.
• To ensure correct safeguard of all securities and to keep a security register for all types
of loans/advances.
• To ensure that all types of securities (insurance policies, fixed deposits etc) are being
kept up to date.
• To review periodically bad and doubtful accounts for chances of recovery.
• To evaluate loans and customers after repayment.

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Handout 4.2. Sample Job Descriptions Individual Lending Toolkit for Credit Managers 3

Job Title: Recovery Officer

The main function of the Recoveries Officer is to appraise and assess bad debt
situations, to prepare reports for the Credit Manager and Chief Credit Manager and to
follow up cases of bad debts handled by auctioneers and lawyers.

Main Duties and Responsibilities

Planning and Development-

• Regularly review non-performing classes of outstanding loans and initiates
plans/strategies for recovery of those loans. Makes recommendations to the Credit
Manager and Chief Credit Manager about the likelihood of recovering loans and
whether legal action will be required.

Operations
• Relocates, identifies, seeks contact with defaulters and reminds them of their
obligations towards the bank and/or discusses with them how to serve the
outstanding loan. This shall involve a re-analysis of the defaulters financial status
followed by a comprehensive agreement with the customer on a rescheduled
repayment plan.
• Identifies old loans previously handed to lawyers and contacts lawyers so as to
ascertain the current position of these cases.
• Follows up legal cases and tables his/her recommendations to the Credit Manager
and/or Chief Credit Manager.
• Properly classifies all loans under his/her control and informs Finance of necessary
provisions every month.
• Performs daily, weekly, monthly loan accounting work, as required for off-balance
sheet loans (written off).
• Compiles all required periodic recovery returns for the Branch.
• To ensure follow-up of all legal cases by following up cases handled by auctioneers
and lawyers.
• To ensure strict and continuous follow-up of his/her outstanding portfolio by
checking the daily up-dated arrears list.
• To ensure that records of all loans paid off are properly filed away and securities are
delivered to legitimate owners.
• Secretary to the Credit Committee.
• To circulate the decisions of the Credit Committee to the affected
departments/individuals (copies of minutes to Branch Managers), and obtain
responses where necessary
• Performs other duties that may be assigned from time to time.

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