Small Scale Lending and Financing Cycle

The Palestinian Banking Corporation is employing a fleet of field loan officers (LOs) distributed over the cities of the West Bank and Gaza Strip. The corporation has developed an effective lending and monitoring system managed by a team of qualified experts. The system is divided into 5 stages:

1. First Stage: Initial contact with the client where the LO evaluates the business and economic environment in his area to spots financing and lending opportunities.
2. Second Stage: Study and evaluation phase where the LO studies the project from all angles (market, technical, financial soundness and economic viability) to minimize the project financing risk. At the end of this stage the LO makes his recommendations to the unit coordinator.
3. Third Stage: Decision taking phase where the unit coordinator studies and evaluates the submitted projects to decide on the projects that can be recommended to the loan review committee. The loan review committee meets to make the final decision on which projects to approve and which projects to reject.
4. Fourth Stage: Agreement and disbursement stage where the LO informs the client of the final decision and makes all the arrangements and completes all necessary documents to sign a loan agreement and disbursement plan with the client. At the end of this phase the finance is extended to the client according to agreed financing plan and schedule.
5. Fifth Stage: Follow-up and monitoring phase. This stage starts from the disbursement date and continues until the end of the loan period and full repayment of the loan. During this stage the LO ensures the timely collection of the due payments and provides the client with technical assistance and training where and when needed.