Credit Appraisal Interview Questions and Answers

The process of retail loan from pre-sanctioning to post-sanctioning involves several steps.

• Pre-sanctioning involves collecting necessary documents and verifying the eligibility of the borrower.

• The loan application is then processed and the creditworthiness of the borrower is assessed.

• Post-sanctioning involves disbursing the loan amount and ensuring timely repayment.

• Regular follow-ups are done to ensure timely repayment and any default is addressed promptly.

• The loan account is...read more

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

The latest RERA amendments/news are related to the real estate sector regulations.

• RERA stands for Real Estate (Regulation and Development) Act.

• The amendments aim to protect the interests of homebuyers and promote transparency in the real estate sector.

• One of the key amendments is the extension of the registration period for real estate projects.

• Another amendment focuses on the establishment of Real Estate Appellate Tribunals to resolve disputes.

• The news related to RERA amendm...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

SARFAESI Act is a legal act that allows banks to recover their non-performing assets without court intervention.

• SARFAESI stands for Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act.

• It was enacted in 2002 to enable banks to recover their bad loans without the intervention of courts.

• Under this act, banks can take possession of the collateral security and sell it without the intervention of courts.

• It applies to all secured loans abov...read more

KYC stands for Know Your Customer and is the process of verifying the identity of customers. CIBIL is a credit information company that maintains credit records of individuals and businesses.

• KYC is a regulatory requirement to prevent identity theft, money laundering, and terrorist financing.

• CIBIL is one of the credit bureaus in India that collects and maintains credit information of individuals and businesses.

• KYC involves verifying customer identity through documents like Aad...read more

Cibil is a credit information company that maintains credit records of individuals and businesses.

• Cibil stands for Credit Information Bureau (India) Limited.

• It collects and maintains credit information of individuals and businesses.

• Cibil provides credit scores based on credit history and repayment behavior.

• Lenders use Cibil reports to assess creditworthiness of borrowers.

• A good Cibil score increases chances of loan approval at favorable terms.