Branch Credit Manager Interview Questions and Answers for Freshers

Reserve capital is the amount of funds set aside by a company for specific purposes, while capital reserve is the profit earned by a company that is not distributed to shareholders.

• Reserve capital is a part of the company's share capital that cannot be distributed as dividends to shareholders.

• Capital reserve is created from profits earned by a company and is not distributed to shareholders but kept for specific purposes.

• Reserve capital is a regulatory requirement for companie...read more

Credit visit involves assessing customer income and cibil score to determine loan eligibility.

• Credit visit involves meeting the customer in person to verify income and other financial details.

• Assessing customer income involves reviewing pay stubs, bank statements, and tax returns.

• Cibil score is a credit rating provided by Credit Information Bureau (India) Limited, indicating creditworthiness.

• A loan can be prepared on assessment basis if the customer's income and cibil score m...read more

A credit manager is responsible for assessing and managing the creditworthiness of individuals or businesses.

• They evaluate credit applications and determine the risk involved in lending money or extending credit.

• They set credit limits and terms of payment.

• They monitor credit accounts and ensure timely payments.

• They work closely with sales teams to ensure credit policies are followed.

• They may also negotiate payment plans with delinquent customers.

• Examples of industries that em...read more

Credit is the ability to borrow money or obtain goods or services before payment, based on the trust that payment will be made in the future.

• Credit is a financial arrangement where a lender provides funds to a borrower with the expectation of repayment with interest.

• It allows individuals and businesses to purchase goods and services that they may not be able to afford upfront.

• Credit can be in the form of loans, credit cards, lines of credit, and other financial products.

• Credi...read more

Retail banking assets are financial products and services offered to individual customers by banks.

• Includes savings accounts, checking accounts, personal loans, mortgages, credit cards, and certificates of deposit

• These assets generate revenue for the bank through interest payments and fees

• Banks use retail banking assets to attract and retain customers

GST stands for Goods and Services Tax, a value-added tax levied on most goods and services sold for domestic consumption.

• GST is a comprehensive indirect tax levied on the supply of goods and services.

• It is a destination-based tax, meaning it is levied at the point of consumption.

• GST has replaced multiple indirect taxes like VAT, service tax, excise duty, etc.

• It aims to simplify the tax structure, eliminate cascading effect, and create a common national market.

• GST has differen...read more

NPA norms refer to guidelines set by the Reserve Bank of India for classification of non-performing assets in banks.

• NPA stands for Non-Performing Asset

• RBI categorizes NPAs based on the period for which the asset has remained non-performing

• Different categories include Substandard Assets, Doubtful Assets, and Loss Assets

• Banks are required to make provisions for NPAs based on RBI guidelines