Equitas Small Finance Bank Area Credit Manager Interview Questions and Answers

RBI has issued recent directions on willful defaulters to prevent loan defaults and improve credit discipline.

• RBI has mandated banks to report all willful defaulters to Credit Information Companies (CICs).

• The central bank has also directed banks to publish photographs of willful defaulters in newspapers.

• RBI has set up a Central Repository of Information on Large Credits (CRILC) to track defaulters with exposure of Rs. ...read more

Bank of Maharashtra offers various MSME products to support small and medium enterprises.

• BOM offers MSME loans for working capital, term loans, and project finance.

• They provide customized financial solutions based on the needs of the MSME sector.

• BOM also offers trade finance facilities like letter of credit and bank guarantees to MSMEs.

• The bank has specific schemes like Stand-Up India and Mudra Yojana to support MSMEs.

• ...read more

Documents required for loan applications include proof of income, identification, credit history, and collateral.

• Proof of income such as pay stubs or tax returns

• Identification documents like driver's license or passport

• Credit history report from credit bureaus

• Collateral documentation for secured loans

To analyze a company for a term loan, consider factors like cash flow, debt service coverage ratio (DSCR), financial statements, industry trends, and management quality.

• Examine the company's financial statements to assess its profitability, liquidity, and leverage.

• Calculate the debt service coverage ratio (DSCR) to determine if the company generates enough cash flow to cover its debt obligations.

• Evaluate the company's ...read more

EAD is calculated using the formula EAD = Exposure at Default = PD x LGD x EAD

• Calculate Probability of Default (PD) based on historical data and credit rating

• Determine Loss Given Default (LGD) based on collateral or recovery rate

• Use the formula EAD = PD x LGD x EAD to calculate Exposure at Default

Counterparty risk is the risk of default by a party in a financial transaction, while credit risk is the risk of loss due to a borrower's failure to repay a loan.

• Counterparty risk is specific to financial transactions involving parties such as banks, brokers, or counterparties in derivatives contracts.

• Credit risk is more general and refers to the risk of loss due to a borrower's failure to repay a loan or meet other fi...read more

Credit manager profile involves assessing creditworthiness, managing credit risk, and ensuring timely repayment of loans.

• Assessing creditworthiness of individuals or businesses

• Managing credit risk by setting credit limits and terms

• Ensuring timely repayment of loans through monitoring and follow-up

• Analyzing financial statements and credit reports

• Negotiating payment plans with delinquent borrowers