Paragon Tapes Manager - CRM Interview Questions and Answers for Experienced

Current Ratio is a financial ratio that measures a company's ability to pay its short-term liabilities with its short-term assets.

• Current Ratio = Current Assets / Current Liabilities

• It indicates the liquidity of a company

• A higher current ratio is generally considered better

• Standard current ratio varies by industry

• For example, a current ratio of 2:1 is considered good for most industries

The repayment capacity of the borrower is the most important yardstick in assessment of Term Loan.

• Repayment capacity of the borrower is assessed through various financial ratios such as Debt Service Coverage Ratio (DSCR), Interest Coverage Ratio (ICR), and Loan to Value Ratio (LTV).

• The borrower's credit history, income, and assets are also considered in the assessment.

• The purpose of the loan, the industry in which the ...read more

DSCR is Debt Service Coverage Ratio, a measure of a company's ability to repay its debt. It is calculated by dividing net operating income by total debt service.

• DSCR is a financial ratio used by lenders to assess the creditworthiness of a borrower.

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

• The formula for DSCR is: DSCR = Net Operating Income / Total Debt Service.

• A higher DSCR indicates a better ability ...read more

I handle credit products for various industries.

• I manage credit lines and evaluate creditworthiness for clients in different sectors.

• I analyze financial statements, credit reports, and other relevant data to assess risk.

• I collaborate with sales teams to establish credit terms and conditions for customers.

• I monitor credit limits, payment terms, and collections to ensure timely payments.

• I provide recommendations for cred...read more

I process an average of 50 files per day.

• On average, I handle 50 files daily.

• The number of files I process per day is around 50.

• I typically deal with approximately 50 files each day.

Check points while underwriting

• Evaluate the borrower's credit history and credit score

• Assess the borrower's income and employment stability

• Review the borrower's debt-to-income ratio

• Analyze the borrower's collateral or assets

• Consider the borrower's repayment capacity

• Verify the borrower's financial documents

• Assess the borrower's payment history and credit utilization

• Evaluate the borrower's industry and market conditions

I will check the applicant's credit score, income, employment history, and debt-to-income ratio.

• Credit score

• Income

• Employment history

• Debt-to-income ratio

In tax audit report for loan application, I check for compliance, accuracy, consistency, and potential red flags.

• Check for compliance with tax laws and regulations

• Verify accuracy of reported income and expenses

• Ensure consistency with previous tax returns and financial statements

• Look for potential red flags such as large deductions or unreported income

• Consider the overall financial health of the applicant

If assessee has filed his return in 44AD

• 44AD is a presumptive taxation scheme for small businesses

• The assessee can declare income at 8% of gross receipts

• If the assessee has filed under 44AD, the credit manager should verify the income declared and ensure it is in line with the business activities

• If the income declared is significantly lower than expected, further investigation may be required

CIBIL check includes credit score, credit history, loan repayment behavior, defaults, and outstanding debts.

• Credit score

• Credit history

• Loan repayment behavior

• Defaults

• Outstanding debts