Credit Management Trainee Interview Questions and Answers

No

• No, it would not be advisable to give a loan to a person whose EMI is more than their salary.

• Lending money to someone in such a situation increases the risk of default and non-payment.

• It is important to assess the borrower's ability to repay the loan, and if their EMI exceeds their income, it indicates financial instability.

• Giving a loan in this scenario could lead to financial distress for the borrower and potential losses for the lender.

• It is crucial to consider the borro...read more

Loans are given based on the borrower's creditworthiness, income stability, and collateral.

• Creditworthiness: Assess the borrower's credit history, credit score, and repayment behavior.

• Income stability: Evaluate the borrower's employment history, income level, and ability to repay the loan.

• Collateral: Determine if the borrower has any assets that can be used as collateral to secure the loan.

• Debt-to-income ratio: Analyze the borrower's debt obligations in relation to their inco...read more