Area Credit Manager Interview Questions and Answers

Financial parameters checked for SME file approval include credit score, cash flow, collateral, and industry risk.

• Credit score of the business owner

• Cash flow analysis to ensure ability to repay

• Collateral value to mitigate risk

• Industry risk assessment for sector-specific challenges

Profit margins vary greatly depending on the industry and specific company. Trading units typically have higher profit margins compared to service and manufacturing units.

• Profit margin for trading units is usually higher due to lower overhead costs and higher markups on products.

• Service units tend to have lower profit margins due to higher labor costs and competition.

• Manufacturing units have varying profit margins depending on the industry and efficiency of operations.

• Example...read more

Assessing customers with low cibil score involves analyzing their credit history, financial stability, and potential risk factors.

• Review the customer's credit report to understand the reasons for the low CIBIL score

• Assess the customer's current financial situation, including income, expenses, and existing debts

• Consider any extenuating circumstances that may have led to the low CIBIL score, such as medical emergencies or job loss

• Evaluate the customer's repayment behavior on pr...read more

Bylaws of local mortgages, Equitable Mortgage and registered mortgages

• Bylaws of local mortgages refer to the rules and regulations governing mortgages in a particular locality

• Equitable Mortgage is a type of mortgage where the borrower pledges the property as security without transferring the ownership

• Registered Mortgage is a type of mortgage where the mortgage is registered with the land registry office

• Bylaws may differ for Equitable and Registered Mortgages

Banking offers stability, growth opportunities, and a chance to contribute to the economy.

• Banks provide stability and security for individuals and businesses by safeguarding their money.

• Working in a bank offers opportunities for career growth and advancement.

• Banks play a crucial role in the economy by providing loans and financing for businesses and individuals.

• Banking offers a chance to contribute to financial inclusion and help people achieve their financial goals.

• Banks off...read more

TA DA transfer policy refers to the reimbursement of travel and daily expenses incurred by an employee during official travel.

• TA DA stands for Travel Allowance and Daily Allowance

• The policy outlines the rules and regulations for claiming TA DA

• The reimbursement amount varies based on the destination and duration of travel

• The employee must submit valid bills and receipts to claim TA DA

• The policy may differ based on the organization and position of the employee

Key financial ratios are metrics used to evaluate a company's financial performance and health.

• Key financial ratios include profitability ratios, liquidity ratios, leverage ratios, and efficiency ratios.

• Examples of key financial ratios include return on assets (ROA), current ratio, debt-to-equity ratio, and inventory turnover ratio.

• These ratios help investors, creditors, and management assess the financial strength and performance of a company.

FOIR can be settled by ensuring the borrower's total fixed obligations do not exceed a certain percentage of their income.

• Calculate the borrower's total fixed obligations, including existing loan EMIs, rent, and other fixed expenses.

• Calculate the borrower's income, including salary, rental income, and any other sources of income.

• Divide the total fixed obligations by the borrower's income to get the FOIR.

• Ensure the FOIR is within the acceptable range set by the lender, typical...read more