Home - Find a project - Collateral assessment methodology

Collateral assessment methodology

Congé Solidaire

International solidarity

Mission: Collateral assessment methodology


Location: Dushanbe, Tajikistan


Duration and date: 7 to 10 days on the field (end of June OR Aug-Oct)


Organization: LLC MCO OXUS


Thematic: Collateral assessment methodology





Microfinance aims at providing access to a set of financial products and services to people excluded from the financial system. Mainly spread in developing countries, Microfinance stimulates entrepreneurial activity through small loans granted to micro-entrepreneurs and small-holder farmers and draws up the first stages of a journey towards financial inclusion.


Created in 2008, at the joint initiative of Crédit Agricole’s Directors and the Nobel Peace Prize Laureate Professor Muhammad Yunus, the Grameen Credit Agricole Foundation (GCAF) is a cross-business actor committed to promoting a better-shared economy. Investor, funder, technical assistance coordinator and funds advisor, the Foundation has 71 partners (microfinances institutions and social business) in 33 countries with more than €65 million in commitments. Women and rural populations represent respectively 77% and 76% of the 3 million customers served by the institutions funded by the Foundation.


In 1997 microfinancial project of the Agency for Technical Corporation and Development (ACTED) initiated to create Limited Liability Company (LLC) Micro Credit Organization (MCO) “OXUS”. High demand for microfinancial services, increase of reference project and adoption of the law on microfinancial institutions of the Republic of Tajikistan in 2005 have resulted in the official registration of the LLC MCO “OXUS” as a micro loan organization in January, 2006. Currently, MCO “OXUS” Tajikistan is a part of microfinancial institutions of OXUS Group. OXUS Group also operates in Kyrgyzstan and Afghanistan.




According to LLC MCO “OXUS” current lending manual, collateral is evaluated by Credit staff. Collateral assessment methodology takes into account the current market value of the property and requires discount depending on the type of pledge. The discount for real estate is 30% for apartments in the cities and 50% for residential homes in rural areas. And also 50% for movable properties and vehicles. Now the company wants to update the methodology for assessing collateral and use international standards where all three approaches are used in assessing: these are costly, market and profitable methods (especially for real estates).  More detailed clarification of this approaches listed below:


  • The cost approach for assessing property means determining its value from the expensies used for construction. According to the cost approach, the total value of the property is determined as the sum of the value of the land and the value of the property minus the accumulated depreciation.
  • The market approach for assessing property means determining its value at market prices. The market (comparative) approach based on comparing the valuation property with similar properties for which there is information about prices (depending on location, type of building, year of construction, etc.).
  • The income (profitable) approach for assessing property means determining its value based on the expected income from the property. The essence of the income approach is to assess the current (present) value of future benefits that are expected due to exploitation and the possible sale of property in the future, i.e., by capitalizing income.



Therefore, the company needs for an agile collateral assessment methodology that meets international standards, local requirements and which allow to train Credit staff at all levels.


The objectives and scope of the “Solidarity Banker” mission listed below may be adjusted based on the profile of the expert and his/her recommendation on how to achieve the best results. 







  1. Assessment of the current methodology for assessing collateral
  2. Develop a new methodology for assessing collateral
  3. To train HQ level managers






Action 1: Assessment of the current methodology for assessing collateral




  • Assessment report on existing collateral valuation methodology including opinion on efficiency and alignment with client protection




Action 2: Develop a new methodology for assessing collateral




  • Instruction/Manual
  • Calculation and costing tools (Excel tool)




Action 3: To train HQ level managers




  • Training module







The Crédit Agricole expert will dedicate a total of 17-20 working days to the mission:


  • Preparation: 5 working days to prepare the mission (spread over the month preceding the field mission)
  • Field mission: 7-10 days visiting Oxus Tadjikistan’s headquarters, branches and clients
  • Post-mission: 5 working days to finalize the deliverables at the expert’s office to spread over 3 weeks following the field mission









-          Selection of the Crédit Agricole expert who will become the Solidarity Banker of the mission. As part of the selection process, the candidates will be interviewed by GCAF, Crédit Agricole and Oxus Tajikistan and will present their understanding of the ToRs and feasibility.




-          Expertise sponsorship agreement signed.


-          Preparation of the mission by the Solidarity Banker, XOxus Tajikistan and GCAF (5 working days to spread over the month preceding the field mission).




-          Field mission by the Solidarity Banker (7 to 10 days).


-          Final deliverables to Oxus Tajikistan following the field mission (5 working days to spread over 3 weeks following the field mission).  






  • Plane tickets and insurance: Crédit Agricole SA
  • Accommodation, Food allowance and domestic transport: Oxus Tajikistan
  • Personal expenses on site: Crédit Agricole expert
  • Pre-mission training and mission coordination:  Grameen Crédit Agricole Foundation






  • The field mission will take place mainly in Dushanbe,. Travels outside Dushanbe will be required to meet Oxus Tajikistan’s clients.



The expert is a Credit Agricole staff, willing to engage in the “Solidarity Bankers” program, with the following expertise / experience:



  • Work experience  in retail banking
  • Collateral assessment experience
  • English and/or Russian speaker
  • Exposure to microfinance a strong plus



For information on « Solidarity Banker »

Carolina HERRERA, Head of Communication and Partnerships



For information on this mission:

Caroline Brandt, Senior Communication Officer


Contact details in the non-profit organisation

Address : Cécile Delhomme, Head of Communication and Partnerships : cecile.delhomme@credit-agricole-sa.fr

Project location

Details of commitment level

L'expert consacrera 7 à 10 jours ouvrables au projet. Un temps de préparation sera requis avant le départ (5 jours) et après la mission (5 jours).