Credit Analyst Interview Questions
In a Credit Analyst interview, employers are likely to ask you questions that relate to your analytical and analysis skills, as well as your ability to manage multiple projects. You can expect them to ask interview questions that ask you describe situations in which you analyzed data to make important strategic decisions.
Top Credit Analyst Interview Questions & How to Answer
Here are three top credit analyst interview questions and how to answer them:
Question #1: What steps do you take when evaluating if a borrower is capable of repaying a loan?
How to answer: This interview question encourages you to provide a list of steps you take when analyzing the risk of potential borrowers. You can use this question to demonstrate skills in evaluating, assessing, calculating, and decision-making, all important to working as a credit analyst.
Question #2: Tell me about the financial software programs you're most comfortable using.
How to answer: Using software programs is a part of working as a credit analyst as you'll often collect and analyze data using them. Use your answer here to describe which programs you have used in the past, as well as your comfort level with using each one.
Question #3: What skill sets you apart from other credit analysts applying for the same position?
How to answer: This is your chance to stand out from other candidate competitors and to highlight what makes you a unique analyst. You might discuss specific a skill, like your ability to predict risk or to lead multiple client projects efficiently.
What would you ask when someone wanted to borrow a money? What specifically would you look at (in the financial statements)?
2 Answers↳
What would the intended use of the funds. Look for any repeating/reoccurring withdrawals, any NSF fees/returned checks, large cash deposits or deposits that are 20-50%+ of the prospect’s income. Less
↳
How much do you need and what is the money for? Look at value of new purchased item, inventory, depreciation, accounts receivable, etc to see if the loan is servicable. Less
"What are the relationship between the three major financial statements"
1 Answers↳
Starts with the income statement, which brings you to net income. Net income is used to start the statement of retained earnings. Once retained earnings is calculated it is posted to the balance sheet in the equity section of the statement. Net income is also used to start the cash flows statement, which eventually gives you the change in cash flows that is posted in the asset section of the balance sheet. Less
Consider a random walk on a graph in the shape of the capital letter Y, with nodes at A and B at the top, C at the bottom, and O in the center. With probability 1/3, there is a transition from O to A, B, or C that takes 1 time unit to complete. Find the expected time to get to C, starting at A.
7 Answers↳
All branches go to O with prob 1. So Ec_a = 1 + 1/3 + 2/3Ec_c since the time from b to a is the same by symmetry. Solving we have Ec_a = 4 Less
↳
I thought this was a geometric series question and came up with the answer of 2, which was clearly wrong. The interviewer tried to help me out, but he and I were using different notation, which we only discovered after 10 minutes of very confusing discussion, in which we both probably thought the other was either insane or stupid. He kept prodding me to "use the symmetry of the situation" (i.e., A and B are basically the same thing), but I wasn't able to see how the symmetry translated into a mathematical result. We moved on without discovering the answer. Less
↳
if no probability is associated with A to O (A to O is a certain thing to happen) then it would be 1+ 1*(1/3) = 4/3. correct me if im wrong Less
What will you do if you get offered an amazing opportunity elsewhere that pays more once you have started here?
5 Answers↳
I would return the question, what would you do if after hiring me you found an amazing candidate that would work twice like me and ask for half as much? Less
↳
There's monetary income and there's psychological income. Very often, the first will satisfy on the short term, but the second carries on for the long term. A good working environment, an exciting and intellectually stimulating job, and a package of good benefits go a long way in making an employee happy. Less
↳
There are many factors to be considered before deciding to move to another workplace, once I have started working at a specific company. They include, but are not limited to employee treatment, company's short term and long term goals, company's social o community policies, opportunities for employees' growth and job stability. A temporary or apparent advantageous opportunity elsewhere might not seem so brilliant if we analyse of these factors. So, I would stay with the company that provides the best working environment, fair compensation and opportunities to grow, as well as a philosophical approach to society as a whole and the community around it that is beneficial and positive. Less
Describe securitization in brief
4 Answers↳
The process of selling your asset pool to a buyer by structuring it as securities. Less
↳
securitization means that company sell his asset portfolio to other company is known as securitization Less
↳
prevents unauthorized access. Guarantee for returns.
Why do you want to be in sales? What makes you think you are fit for sales job? Why home loans/credit cards?
5 Answers↳
because I am working with HDB Financial SERVICES Ltd as sales manager in loan department . Actually I have 6 year experience .So i want job with kotak bank Less
↳
I know that about sales
↳
Yes
Sell me this pen.? Past experience..
4 Answers↳
Easily
↳
Good afternoon my name Is Debbie how are you doing today? May I ask your name ? Hello Jane, I see you were just recently using a pen to sign a paper and I want to share something with you I have something I want you to try out and see if you like it it's a pen that won't get in collar your hands at while stop writing it's fabulous and I just want you to try it can you try it and see what you think of it then isn't that a great pen and jute I think it's so smooth today I am I have these pens and I just wanna to let you try and see if your intrested in in this pen because I could I could get you this 10 and a really add a really good cost it would save you so much on all the other pens that you might buy would you like to buy this pen Less
↳
Buy this