P R Randive & Co Interview Questions and Answers

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 would be 40%

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 not overextended

• Consider any outstanding loans or credit ...read more

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 ratio of 80%, the maximum loan amount the borrower can get is ...read more

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 more, it is classified as NPA

• For a doubtful asset, if inter...read more

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 fund specific projects.

• Examples include U.S. Treasury STRIPS ...read more