Eram Technologies Interview Questions and Answers

CIBIL is a credit information company that provides credit scores and reports to lenders. DPD stands for Days Past Due, DBT stands for Days Beyond Terms, sub standard refers to loans with high risk of default, Dbr ratio is Debt Burden Ratio, and FOIR ratio is Fixed Obligation to Income Ratio.

• CIBIL is a credit information company that provides credit scores and reports to lenders

• DPD stands for Days Past Due, indicating the number of days a payment is overdue

• DBT stands for Days...read more

Metrics used to evaluate risk include credit score, debt-to-income ratio, payment history, and credit utilization.

• Credit score: A numerical representation of a borrower's creditworthiness based on their credit history.

• Debt-to-income ratio: The percentage of a borrower's monthly income that goes towards paying debts.

• Payment history: A record of a borrower's past payments on credit accounts.

• Credit utilization: The amount of available credit being used by a borrower.

Debt Service Coverage Ratio (DSCR) is a financial metric used to assess a borrower's ability to repay debt obligations.

• DSCR measures the cash flow available to cover debt payments.

• It is calculated by dividing the borrower's net operating income by their total debt service.

• A DSCR of 1 or higher indicates that the borrower has sufficient cash flow to cover their debt obligations.

• Lenders often require a minimum DSCR before approving a loan.

• For example, if a borrower has a net op...read more

CBIL stands for Credit Bureau India Limited, which is a credit information company in India.

• CBIL is a credit information company that collects and maintains credit information of individuals and businesses.

• It provides credit reports and scores to lenders to help them make informed lending decisions.

• CBIL helps in reducing the risk of default by providing accurate credit information.

• It plays a crucial role in the credit evaluation process for loans and credit cards.

• Lenders use ...read more

Net worth is the value of an individual's or company's assets minus liabilities.

• Net worth is a measure of financial health and indicates the value of an entity after deducting its debts.

• It is calculated by subtracting liabilities from assets.

• Assets can include cash, investments, real estate, vehicles, and other valuable possessions.

• Liabilities encompass debts, loans, mortgages, and other financial obligations.

• A positive net worth indicates wealth, while a negative net worth s...read more

Normal credit norms and policy refer to the standard guidelines followed by a company while extending credit to its customers.

• Credit limit is set based on the customer's creditworthiness

• Payment terms are agreed upon between the company and the customer

• Late payment fees and interest rates are charged for delayed payments

• Credit checks are conducted before extending credit to new customers

• Credit policies are reviewed periodically to ensure they are up-to-date and effective