Aadhar Housing Finance Credit Verification Officer Interview Questions and Answers

Financial ratios are tools used to analyze a company's financial performance and health. Bank statements provide a snapshot of an individual's financial transactions and balances.

• Financial ratios are used to evaluate a company's profitability, liquidity, solvency, and efficiency.

• Examples of financial ratios include debt-to-equity ratio, current ratio, return on equity, and gross margin.

• Bank statements show a person's i...read more

DSCR stands for Debt Service Coverage Ratio. It is a financial metric used to evaluate a company's ability to pay its debt obligations.

• DSCR is calculated by dividing a company's operating income by its total debt service obligations.

• A DSCR of 1 or higher indicates that a company is generating enough income to cover its debt payments.

• Lenders often use DSCR to assess the creditworthiness of a borrower before extending a ...read more

Important ratios for credit analysis include debt-to-equity, current ratio, and interest coverage ratio.

• Debt-to-equity ratio: Indicates the proportion of debt used to finance a company's assets. A lower ratio is generally preferred.

• Current ratio: Measures a company's ability to cover its short-term liabilities with its short-term assets. A ratio above 1 is ideal.

• Interest coverage ratio: Shows a company's ability to pay...read more