The loan portfolio is the primary income-generating asset for an MFI but is often subject to misstatement. Most MFI failures stem from the deterioration in the quality of the loan portfolio. An assessment of the risks inherent in an MFI’s portfolio therefore assumes tremendous importance and this is the most important objective of a ‘loan portfolio audit’. MFI credit (lending) operations have unique characteristics that portfolio assessors/auditors must first understand and this loan portfolio audit course exposes them to these special characteristics so that they can understand the inherent risks, in an appropriate manner. This course is based on a toolkit developed by MicroSave (and the Microfinance Consulting Group).