In microfinance, credit is the main product demanded by low-income clients. It is also the source of an MFI’s largest earning asset – the loan portfolio. This course starts with the definition and principles of microfinance. The course also discusses the characteristics of microfinance clients. Various methodologies in the provision of microcredit such as group methodologies with group and individual liabilities, village banking, individual lending, and crowd financing are thoroughly illustrated. The course also presents character and debt capacity as bases for assessing credit worthiness. Participants will be familiarized to use and understand the rationale behind tools such as the loan application form; credit and background investigation forms; cash flow analysis form; and credit scoring system. The course will also give a preview on how to prevent delinquency. Through the identification of the causes and costs of delinquency, the participants are encouraged to develop policies on how to prevent and mitigate these. SEDPI also shares its vast experience in implementing effective delinquency management techniques during the training.