Difference between revisions of "SPIS Invest"

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=== '''<span style="color:#879637;">Module Aim and Orientation</span>''' ===
 
=== '''<span style="color:#879637;">Module Aim and Orientation</span>''' ===
  
Financing solar-powered irrigation can be an opportunity for financing institutions seeking to diversify their loan portfolio and expand their range of financial products. The '''INVEST''' module focuses on product features for SPIS loans, considering direct financing by financial institution to a small and medium-scale agricultural end borrower.  
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Financing solar-powered irrigation can be an opportunity for financial institutions seeking to diversify their loan portfolio and expanding their range of financial products. The '''INVEST''' module focuses on the product features for SPIS loans, considering direct financing by financial institution to a small and medium-scale agricultural end borrower.  
 
<span class="mw-customtoggle-SPIS3" style="font-size:small; font-weight: bold; display:inline-block; float:right; color: blue"><span class="mw-customtoggletext">read more</span></span>
 
<span class="mw-customtoggle-SPIS3" style="font-size:small; font-weight: bold; display:inline-block; float:right; color: blue"><span class="mw-customtoggletext">read more</span></span>
 
<div id="mw-customcollapsible-SPIS3" class="mw-collapsible mw-collapsed">
 
<div id="mw-customcollapsible-SPIS3" class="mw-collapsible mw-collapsed">
The module also points out how it is different from financing conventional irrigation systems. It provides guidance to financial service providers already financing or planning to finance SPIS. It thus addresses two groups:
+
The module brings out the difference of financing solar powered irrigation as compared to conventional irrigation systems. It provides guidance to financial service providers who are already financing or planning to finance SPIS. It thus addresses two groups:
  
*stakeholders at '''management level''' who decide upon credit policies of a financial service provider.
+
*Stakeholders at '''management level''' who decide upon credit policies of a financial service provider.
  
*'''loan officers''' who assess single loan applications for financing SPIS.
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*'''Loan officers''' who assess single loan applications for financing SPIS.
 
</div>
 
</div>
  
 
=== '''<span style="color:#879637;">Process Steps</span>'''<span style="color:#879637;"></span> ===
 
=== '''<span style="color:#879637;">Process Steps</span>'''<span style="color:#879637;"></span> ===
  
Three steps are elaborated in the '''INVEST''' module to support the process of defining the financial service provider’s credit policy on '''management level''': First the analysis of the potential of the SPIS market segment; secondly the determination of general credit risks involved; and thirdly, the design and test of suitable financial instruments.
+
Three steps have been elaborated in the '''INVEST''' module to support the process of defining the financial service provider’s credit policy at the '''management level''': Firstly, the analysis of the potential of the SPIS market segment; secondly, the determination of general credit risks involved; and thirdly, the design and test of the suitable financial instruments.
 
<span class="mw-customtoggle-SPIS6" style="font-size:small; font-weight: bold; display:inline-block; float:right; color: blue"><span class="mw-customtoggletext">read more</span></span>
 
<span class="mw-customtoggle-SPIS6" style="font-size:small; font-weight: bold; display:inline-block; float:right; color: blue"><span class="mw-customtoggletext">read more</span></span>
 
<div id="mw-customcollapsible-SPIS6" class="mw-collapsible mw-collapsed">
 
<div id="mw-customcollapsible-SPIS6" class="mw-collapsible mw-collapsed">
For the specific individual loan assessment process on '''loan operations level''', three main steps are elaborated: First, the determination of the financing volume and calculation of the profitability of the investment; secondly, the assessment of credit risk and collateral of the potential borrower; and finally, the determination of the cash flow and the repayment plan for the single potential client, along with loan conditions.  
+
For the specific individual loan assessment process on '''loan operations level''', three main steps have been elaborated: Firstly, the determination of the financing volume and calculation of the profitability of the investment; secondly, the assessment of credit risk and collateral of the potential borrower; and finally, determination of the cash flow and the repayment plan for the single potential borrower, along with loan conditions.  
 
</div>
 
</div>
  

Revision as of 14:32, 12 July 2018

=== ►Back to the Start Page ===

Module Aim and Orientation

Financing solar-powered irrigation can be an opportunity for financial institutions seeking to diversify their loan portfolio and expanding their range of financial products. The INVEST module focuses on the product features for SPIS loans, considering direct financing by financial institution to a small and medium-scale agricultural end borrower. read more

The module brings out the difference of financing solar powered irrigation as compared to conventional irrigation systems. It provides guidance to financial service providers who are already financing or planning to finance SPIS. It thus addresses two groups:

  • Stakeholders at management level who decide upon credit policies of a financial service provider.
  • Loan officers who assess single loan applications for financing SPIS.

Process Steps

Three steps have been elaborated in the INVEST module to support the process of defining the financial service provider’s credit policy at the management level: Firstly, the analysis of the potential of the SPIS market segment; secondly, the determination of general credit risks involved; and thirdly, the design and test of the suitable financial instruments. read more

For the specific individual loan assessment process on loan operations level, three main steps have been elaborated: Firstly, the determination of the financing volume and calculation of the profitability of the investment; secondly, the assessment of credit risk and collateral of the potential borrower; and finally, determination of the cash flow and the repayment plan for the single potential borrower, along with loan conditions.

Chapters

1. Basic decision-making tools
2. Credit policy: Analyze potential
3. Credit policy: Risk analysis
4. Credit policy: Select/develop suitable financial instruments
5. Loan assessment: Determine financing volume and profitability
6. Loan assessment: Assess credit risk and collateral
7. Loan assessment: Adjust repayment plan to cash flow

Supplementary Tools

Further Readings

read more

Annex - Collection of Formulae