Microfinance & Small-Loan Math: Flat vs Declining Rates, APR & Portfolio Quality
Price small loans the honest way, flat vs declining balance, APR and EIR with fees and compulsory savings, then measure repayment, PAR30/PAR90, provisions, self-sufficiency and the yield an MFI needs, every cell checked live.
The first lesson is free — no account needed.
About this course
A microfinance course that prices small loans honestly and measures portfolio quality in a spreadsheet, using one fictional microfinance institution, for loan officers, MFI analysts, impact investors and development finance students. You compare a flat rate with declining-balance interest on the same loan and find the flat loan's true annual rate, turn an upfront fee and compulsory savings into an APR with RATE and an effective rate with EFFECT, build weekly and monthly repayment schedules with due dates, measure on-time and cumulative repayment of borrower groups, sort loans into ageing buckets for PAR30 and PAR90, size loan loss provisions and the write-off ratio, calculate operational self-sufficiency and cost per borrower and build the interest rate the institution needs against the yield it actually earns. The first lab is free.
Lessons
- Flat vs Declining-Balance Interest: Same Rate, Different CostFree
- APR & Effective Interest Rate with Fees and Compulsory Savings Pro
- Weekly vs Monthly Repayment Schedules with Due Dates Pro
- Group Lending: On-Time and Cumulative Repayment Rates Pro
- Portfolio at Risk: PAR30, PAR90 and the Ageing Table Pro
- Write-Offs and Loan Loss Provisioning by Ageing Bucket Pro
- Operational Self-Sufficiency, Cost per Borrower & Productivity Pro
- Yield Gap & Interest Rate Setting: Build the Required Rate Pro