IIBF MSME study plan

Map the full appraisal-to-recovery lifecycle for an MSME term loan and label each stage with the decision it drives (sanction, disbursement, review, classification, recovery).

Distinguish micro, small and medium enterprise classification criteria under the current statutory definition and apply them to five hypothetical borrower profiles.

Explain why MSME lending needs a distinct credit assessment approach compared with corporate lending (thin financials, informal records, promoter-centric risk, working capital seasonality).

Build a one-page glossary of 20 core MSME financing terms you will use throughout the plan.

Analyse a hypothetical MSME loan proposal using the standard credit assessment framework: business viability, promoter integrity and experience, financial analysis, and repayment capacity.

Compute and interpret key ratios (current ratio, debt-equity, DSCR, interest coverage, TOL/TNW) from a supplied balance sheet and comment on each result.

Assess working capital requirement using the operating cycle method and reconcile it against the drawing power logic.

Identify the common causes of MSME loan default and link each cause to a specific appraisal weakness.

Evaluate collateral and security options for MSME facilities, including the role of guarantee schemes and their coverage limits.

Distinguish project appraisal from working capital appraisal and list the additional checks each requires.

Assess the adequacy of primary and collateral security and document a shortfall scenario.

Draft the conditions and covenants you would attach to a sanction, and state how each would be monitored.

Design a post-disbursement monitoring calendar for an MSME account, covering stock statements, quarterly returns, unit visits and early-warning triggers.

Detect early warning signals from a supplied set of account conduct data (irregular turnover, stock statement delays, excess drawings, cheque returns) and rank them by severity.

Explain the purpose and process of a stock and receivables audit and the corrective actions available to the lender.

Identify the point at which a stressed MSME account must be escalated internally and justify that trigger.

Classify a set of MSME accounts into standard, sub-standard, doubtful and loss categories using the applicable asset classification norms and the time-based rules.

Distinguish restructuring from one-time settlement and state the eligibility conditions and consequences of each.

Explain the regulatory treatment of restructured MSME accounts, including the effect on classification and provisioning.

Compute provisioning requirements for a mixed portfolio of five accounts and reconcile the total.

Sequence the recovery escalation ladder from reminder and demand notice through legal remedies and write-off, and state the trigger for each step.

Compare the available recovery channels (negotiated settlement, tribunals, civil suit, enforcement of security, guarantee invocation) on cost, speed and outcome.

Explain the legal and procedural steps for enforcing security and the documentation a lender must maintain to preserve its claim.

Assess when write-off is appropriate and what approvals and records it requires.

Solve 30 mixed calculation problems under timed conditions covering ratios, drawing power, DSCR, classification and provisioning.

Review every error from the timed set and write the corrected method in your own words.

Rehearse the recovery and restructuring topics most prone to confusion by writing a short comparison table from memory.

Synthesise the whole lifecycle into a single revision sheet you can reconstruct in 15 minutes.

Take two full-length mock tests under exam conditions and score them against the marking scheme.

Target your three weakest areas from the mock results with focused re-reading and a short self-test.

Practise writing structured answers to scenario-based questions within time limits.