Axis Finance CA fresher Interview Questions and Answers

FOIR is crucial for assessing creditworthiness in banking, reflecting a borrower's ability to repay loans.

• FOIR measures the proportion of a borrower's income that goes towards fixed obligations like loans.

• A lower FOIR indicates better creditworthiness; for example, a FOIR of 40% means 40% of income is used for debt repayment.

• Banks use FOIR to determine loan eligibility; typically, a FOIR below 50% is preferred.

• In surro...read more

The debt-to-equity ratio measures a company's financial leverage by comparing total debt to shareholders' equity.

• Formula: Debt-to-Equity Ratio = Total Debt / Total Equity

• Total Debt includes both short-term and long-term liabilities.

• Total Equity is the shareholders' equity, found on the balance sheet.

• Example: If a company has $500,000 in debt and $250,000 in equity, the ratio is 2.0.

• A higher ratio indicates more leverag...read more

As a Credit Manager, I typically process around 100-150 cases monthly, ensuring thorough evaluation and risk assessment.

• I review credit applications, assessing financial history and credit scores.

• On average, I handle 5-7 cases daily, depending on complexity.

• I collaborate with sales teams to understand customer needs and tailor credit solutions.

• For example, I might approve a loan for a small business after verifying the...read more

I have managed credit tickets ranging from small consumer loans to large corporate financing deals, ensuring risk assessment and compliance.

• Handled consumer loans averaging $5,000 to $50,000 for individual clients.

• Managed commercial credit lines up to $1 million for small businesses.

• Oversaw corporate financing deals exceeding $10 million, involving multiple stakeholders.

• Conducted risk assessments for high-value transac...read more

Experienced in credit products like loans, credit cards, and trade finance, with risk management strategies for each.

• 1. **Loans**: Knowledge of personal, auto, and mortgage loans. Risks include default and interest rate fluctuations. Mitigation: thorough credit assessments and fixed-rate options.

• 2. **Credit Cards**: Familiar with revolving credit lines. Risks include overspending and high-interest rates. Mitigation: se...read more

The mortgage industry involves lending practices for purchasing real estate, focusing on loans secured by property.

• Mortgages are loans specifically for buying real estate, typically secured by the property itself.

• There are various types of mortgages, such as fixed-rate, adjustable-rate, and interest-only loans.

• The mortgage process includes application, underwriting, and closing, where the loan is finalized.

• Credit score...read more

LTV, or Loan-to-Value, is a financial ratio that compares the amount of a loan to the appraised value of the asset being purchased.

• LTV is calculated by dividing the loan amount by the appraised value of the property.

• For example, if a home is valued at $200,000 and the loan amount is $160,000, the LTV is 80%.

• A higher LTV ratio indicates higher risk for lenders, often leading to higher interest rates.

• LTV is crucial for m...read more