Karur Vysya Bank Credit Manager Interview Questions, Process, and Tips

LTV stands for Lifetime Value, which is the predicted net profit attributed to the entire future relationship with a customer.

• LTV helps businesses understand the long-term value of a customer and make decisions on customer acquisition and retention strategies.

• It takes into account factors such as customer acquisition cost, average purchase value, and customer lifespan.

• For example, if a customer typically makes a $100 p...read more

DSCR stands for Debt Service Coverage Ratio. To check loan eligibility for a self employed non professional, you would typically calculate their DSCR.

• DSCR is a financial ratio that measures a company's ability to cover its debt obligations with its operating income.

• To calculate DSCR, you divide the company's net operating income by its total debt service.

• A DSCR of 1 or higher indicates that the company generates enough...read more

CIBIL is a credit information company that provides credit scores based on an individual's credit history.

• CIBIL stands for Credit Information Bureau (India) Limited.

• It is one of the four credit information companies in India.

• CIBIL collects credit information from banks and financial institutions to generate credit reports and scores.

• Factors checked include payment history, credit utilization, length of credit history, ...read more

Eligibility for a salaried employee is checked by verifying their employment status, income level, and credit history.

• Verify employment status through pay stubs or employment verification letter

• Check income level through recent pay stubs or tax returns

• Review credit history through credit reports from bureaus like Equifax or TransUnion

Repo rate is the rate at which the central bank lends money to commercial banks, while reverse repo rate is the rate at which the central bank borrows money from commercial banks.

• Repo rate is used by the central bank to control inflation and liquidity in the economy.

• Reverse repo rate is used to absorb excess liquidity in the market.

• Repo rate is higher than the reverse repo rate.

• Example: If the repo rate is 5% and the r...read more

KYC documents are documents required for verifying the identity of customers. PAN card is a KYC document.

• KYC documents are Know Your Customer documents used for verifying the identity of customers.

• Examples of KYC documents include Aadhaar card, passport, driver's license, and voter ID card.

• PAN card is also considered a KYC document as it contains details such as name, date of birth, and photograph of the individual.

During a Personal Discussion with a potential customer, a Credit Manager will discuss the customer's financial situation, credit history, repayment capabilities, and any potential risks. They will observe the customer's communication skills, honesty, and willingness to provide necessary information.

• Discuss the customer's financial situation and income sources.

• Review the customer's credit history and repayment track rec...read more