SOP Manual for Credit Department


This article discusses “Credit Department and its SOP Manual”. Credit department in a bank that evaluates the financial condition of credit applicants and maintains a log of loan payments on currently outstanding loans. Credit information is gathered on a confidential basis and stored for future reference.

Role and Responsibility of Credit Officers:

  • Review loan requests
  • Assess clients’ financial status
  • Evaluate creditworthiness and risks
  • Contact clients to gather financial data and documentation
  • Analyze risks and approve or reject loan requests
  • Calculate financial ratios (e.g. credit scores and interest rates)
  • Set up payment plans
  • Maintain updated records of loan applications
  • Follow up with clients about loan renewals
  • Monitor progress of existing loans
The Function of Credit Department:

  • Maximizing Sales
  • Accelerating cash inflow
  •  Minimizing bad debt losses
  • Reviewing and approving new accounts
  • Developing and updating credit and collection policies
  • Establishing appropriate credit limits and terms of sale for new and active customers.
Some of the international association of Credit department:

  • National Association of Credit Management (NACM).
  • Finance, Credit and International Business Association (FCIBA).
  • The Association of Credit and Collection Professionals (ACCP).
  • Credit Services Association (CSA).
  • Indian Banks Association (IBA).
  • The Malta Association of Credit Management (MACM).
  • Association of Asia Confederation Credit Union (AACCU).
  • The American Medical Association (AMA).
  • National Consumer Reporting Association (NCRA).
  • Risk Management Association (RMA).
  • Digital Lenders Association of India (DLAI).
  • Bank Card Association (BCA).
  • Credit Services Association (CSA).
  • The Japan Consumer Credit Association (JCCA).
  • Chicago Fire Officers Association (CFOA).
  • The Association of Corporate Treasures (ACT).
  • The Association for Financial Professionals (AFP).
  • Association for Enterprise Opportunity (AEO).
  • Association of Credit Union Internal Auditors (ACUIA).
  • Credit First National Association (CFNA).
  • Ghana Co-Operative Credit Unions Association (GCCUA).
  • ALEAP Credit Guarantee Association (CGA).
  • Georgia Bankers Association (GBA).
  • Heartland Credit Union Association (HCUA).
  • Hopi Credit Association (HCA)
  •  Northwest Credit Union Association (NCUA).
  • Special Assets Management Association (SAMA).
  • American Sociological Association (ASA).
  • Kenya Bankers Association (KBA).
  • South Carolina Bankers Association (SCBA).
  • Cross State Credit Union Association (CSCUA).
  • Association Continuing Education Credit (ACEC).
  • Credit Union Mortgage Association (CUMA).
  • Community Association Payment (CAP).
  • Riverside Sheriffs Association (RSA).
  • Government Finance Officers Association (GFOA).
  • Association of Secondary Teachers in Ireland (ASTI).
  • Financial Counseling Association of America (FCAA).
  • Employees Credit Association (ECA).
  • American Osteopathic Association (AOA).
  • International Bar Association (IBA).
  • Sandestin Owners Association (SOA).
  • Arkansas Education Association Federal Credit Union (AEAFCU).
  • Self Employed Women’s Association (SEWA).
  • California Association of Collectors (CAC).
  • Iowa Geothermal Association (IGA).
  • The Credit Protection Association (CPA).
  • Credit Union Association of the Dakotas (CUAD).
  •  Merchants Credit Association (MCA).
  • Association of Legal Administrators (ALA).
International Standard related to this industry:
  • ISO 9000 Quality system
  •  ISO 9001: 2015
  • ISO 27001: 2013
  • ISO 9001: 2008
  • ISO 14001: 2015
Few of the World best Companies in this industry are,
  • Equifax
  •  Experian
  • TransUnion
Some of the magazine and journals that will keep you track on:
You Tube:

Written by SOP Team

Leave a Reply


    Search form


      See all

      Growth Is Just One Click Away

      Don't feel like calling? Just share some details about your SOP Requirements & Fhyzics representative will get in touch with you. Schedule A Meeting with our Manager [Consulting & Certifications]