Senior Credit Officer Interview Questions and Answers

CIBIL score is a credit score used by lenders to evaluate the creditworthiness of borrowers.

• CIBIL score is a 3-digit number ranging from 300 to 900.

• It is based on an individual's credit history and repayment behavior.

• Higher the score, higher the chances of getting a loan approved at a lower interest rate.

• A score above 750 is considered good and below 600 is poor.

• CIBIL score is one of the factors considered by lenders while approving a loan or credit card application.

OTC stands for Over-the-Counter and refers to financial transactions conducted directly between parties without the involvement of an exchange. PDD stands for Probability of Default and is a measure used in credit risk assessment.

• OTC refers to off-exchange trading of financial instruments.

• OTC transactions are typically conducted through dealer networks.

• PDD is a statistical measure used to estimate the likelihood of a borrower defaulting on their debt obligations.

• PDD is common...read more

CIBIL score ranges from 300 to 900. A score above 750 is considered good while below 600 is bad.

• CIBIL score ranges from 300 to 900

• A score above 750 is considered good

• A score below 600 is considered bad

Banking sheet terms include assets, liabilities, capital, income, expenses, and risk.

• Assets: cash, loans, investments, etc.

• Liabilities: deposits, loans, bonds, etc.

• Capital: equity, reserves, etc.

• Income: interest, fees, commissions, etc.

• Expenses: salaries, rent, utilities, etc.

• Risk: credit, market, operational, etc.

Branch RC limit refers to the maximum amount of credit that a branch is authorized to extend to its customers.

• Branch RC limit is set by the senior management based on the branch's financial strength and risk appetite.

• It helps in controlling the credit exposure of the branch and ensures that it operates within its financial limits.

• Exceeding the branch RC limit can lead to increased credit risk and potential losses for the branch.

• Regular monitoring and review of the branch RC l...read more

Assessment of income involves analyzing various sources of income and determining their reliability and consistency.

• Gather information on all sources of income, including employment, investments, and rental properties.

• Review tax returns, pay stubs, and bank statements to verify income.

• Consider the stability and predictability of income sources.

• Assess any potential risks or uncertainties that could impact income in the future.

• Compare income to expenses to determine the borrowe...read more