Vistaar Finance Legal Associate Interview Questions and Answers

DSCR stands for Debt Service Coverage Ratio, it is important while lending to assess the borrower's ability to repay the loan.

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

• A higher DSCR indicates that the company has more income available to meet its debt obligations.

• Lenders use DSCR to evaluate the risk of lending money to a borrower, as a low DSCR ...read more

Disaster management involves planning, coordinating, and implementing measures to prevent, prepare for, respond to, and recover from natural or man-made disasters.

• Involves risk assessment, mitigation, preparedness, response, and recovery

• Requires coordination among various stakeholders such as government agencies, NGOs, and communities

• Examples include creating evacuation plans for hurricanes, setting up emergency shelte...read more

Credit risk refers to the potential loss that a lender may incur due to a borrower's failure to repay a loan or meet contractual obligations.

• Credit risk is the risk of financial loss resulting from a borrower's failure to repay a loan or meet other financial obligations.

• It is important for financial institutions to assess and manage credit risk to protect their assets and maintain financial stability.

• Factors that contr...read more