Credit Risk Management in SME Finance

Abstract

Financial leasing businesses handles tangible assets. Leasing companies are the legal owner of the asset but ownership is effectively passed on to the lessee. SME stands for organization of small and medium size which now plays a vital role in the business sector. In this report many things related to credit risk management and SME financing has been described. First of all, the organization IDLC’s introduction has been given with the SWOT Analysis. The part of tasks and responsibilities what I did there has been explained with an observation and also some problems I faced during my internship and how I did overcome those has been also mentioned. In this study I gathered by interviewing two IDLC staff, how the SME team at IDLC chooses the right client and what are the issues they investigate before sanctioning a loan. The overall scenario of leasing companies in Bangladesh has been explained in this report. According to the objective the recommendation has been stated.