LIC Housing Finance Credit Appraisal Interview Questions and Answers

General Banking , Maths, And reasoning

Q1. How do u analyse CIBIL
Ans. 
CIBIL analysis involves reviewing credit history, credit score, loan repayment behavior, and credit utilization ratio.
• Review credit history and identify any past defaults or delinquencies

• Check credit score and ensure it meets the minimum requirement for loan approval

• Analyze loan repayment behavior to determine if the borrower is likely to repay the loan on time

• Evaluate credit utilization ratio to ensure the borrower is...read more
Answered by AI
Add your answer
Q2. What is Loan to value ratio
Ans. 
Loan to value ratio is the ratio of the loan amount to the appraised value of the collateral provided by the borrower.
• It is used by lenders to determine the risk of lending money to a borrower.

• A higher LTV ratio indicates a higher risk for the lender.

• Lenders usually have a maximum LTV ratio that they are willing to lend.

• For example, if a borrower wants to buy a house worth $200,000 and the lender has a maximum LTV rati...read more
Answered by AI
Add your answer
Q3. What is Monthly income to installment ratio (MLSC)
Ans. 
MLSC is the ratio of monthly income to monthly installment paid towards a loan.
• MLSC is used by lenders to determine the borrower's ability to repay the loan

• A higher MLSC indicates a better ability to repay the loan

• MLSC is calculated by dividing monthly income by monthly installment

• Ideally, MLSC should be less than or equal to 50%

• For example, if a borrower's monthly income is $5000 and monthly installment is $2000, MLSC...read more
Answered by AI
Add your answer
Q4. Resume based questions
Add your answer
Q5. What is Zero coupon bonds
Ans. 
Zero coupon bonds are bonds that do not pay interest during their term but are sold at a discount and redeemed at face value.
• Zero coupon bonds are also known as discount bonds.

• They are issued at a price lower than their face value.

• They do not pay any interest during their term.

• The return on investment is the difference between the purchase price and the face value.

• They are often used for long-term investments or to fun...read more
Answered by AI
Add your answer
Q6. Indian Accounting standards
Add your answer
Q7. What are the NPA norms of RBI.
Ans. 
NPA norms of RBI refer to the guidelines set by RBI for classification of non-performing assets.
• NPA is an asset that ceases to generate income for the bank

• RBI has set different norms for classification of NPAs based on the duration of default

• For a standard asset, if interest or principal is overdue for 90 days or more, it is classified as NPA

• For a sub-standard asset, if interest or principal is overdue for 90 days or m...read more
Answered by AI
Add your answer
Q8. What is SARFAESI ACT
Ans. 
SARFAESI Act is a legal act that allows banks to recover their non-performing assets without court intervention.
• SARFAESI stands for Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act.

• It was enacted in 2002 to enable banks to recover their bad loans without the intervention of courts.

• Under this act, banks can take possession of the collateral security and sell it without the i...read more
Answered by AI
Add your answer