CARS24 Credit Officer Interview Questions, Process, and Tips

AQB stands for Average Quarterly Balance, which is the average balance maintained in a bank account over a quarter.

• AQB is calculated by adding the closing balance of each day in a quarter and dividing it by the number of days in that quarter.

• It is an important factor considered by banks to determine the account holder's eligibility for various services like loans, credit cards, etc.

• For example, if a bank account has a ...read more

FOIR stands for Fixed Obligation to Income Ratio, a measure used by lenders to assess an individual's ability to repay a loan.

• FOIR is calculated by dividing the total fixed obligations of an individual by their gross monthly income.

• Lenders use FOIR to determine the maximum amount of loan that can be sanctioned to an individual based on their income and existing obligations.

• A lower FOIR indicates a lower financial burde...read more

AQB can be calculated by averaging the daily closing balance of an account over a specific period.

• Calculate the daily closing balance of the account for the specified period.

• Add up all the daily closing balances.

• Divide the total by the number of days in the period to get the Average Quarterly Balance (AQB).

FOIR can be calculated by dividing the total fixed obligations by the total income of an individual or entity.

• Calculate total fixed obligations (EMIs, rent, etc.)

• Calculate total income (salary, business income, etc.)

• Divide total fixed obligations by total income to get FOIR

• FOIR = Total Fixed Obligations / Total Income

• For example, if total fixed obligations are $1000 and total income is $5000, FOIR would be 0.2 or 20%