Interview Questions and Answers

PL stands for Personal Loan and Mortgage is a loan taken against a property.

• PL is an unsecured loan that can be used for any purpose.

• Mortgage is a secured loan where the property is used as collateral.

• PL interest rates are higher than mortgage rates.

• Mortgage is a long-term loan with a fixed or adjustable interest rate.

• PL is a short-term loan with a fixed interest rate.

• Examples of PL include credit card debt consolidation, home renovation, or medical expenses.

• Examples of mortg...read more

The particular item is found in the liabilities section of the balance sheet.

• Liabilities section of the balance sheet

• Opposite of assets

• Includes debts and obligations

CBIL stands for Coronavirus Business Interruption Loan. It is a loan scheme introduced by the UK government to support small and medium-sized businesses affected by the COVID-19 pandemic.

• CBIL is a loan scheme introduced by the UK government to support small and medium-sized businesses affected by the COVID-19 pandemic.

• It provides financial support to businesses that are losing revenue or experiencing cash flow disruptions due to the pandemic.

• The scheme offers loans of up to £...read more

DTI stands for Debt-to-Income ratio and FOIR stands for Fixed Obligation to Income ratio.

• DTI is a measure of how much debt a person has compared to their income.

• FOIR is a measure of how much of a person's income is already committed to fixed obligations like rent or loan payments.

• Both ratios are used by lenders to assess a borrower's ability to repay a loan.

• A high DTI or FOIR may indicate that a borrower is at risk of defaulting on a loan.

• For example, if a borrower has a mont...read more

Loan process involves application, underwriting, approval, and funding stages.

• Application: Borrower submits loan application with necessary documents.

• Underwriting: Lender evaluates borrower's creditworthiness and risk.

• Approval: Loan is approved or denied based on underwriting results.

• Funding: Once approved, funds are disbursed to borrower.

• Repayment: Borrower repays loan amount with interest according to agreed terms.

Sub mean in CIBIL refers to the credit score calculated by CIBIL for individuals with limited credit history.

• Sub mean is used by CIBIL to assess the creditworthiness of individuals with insufficient credit history.

• It is a subset of the overall credit score and may be lower due to lack of credit history.

• Lenders may consider other factors in addition to the sub mean score when evaluating credit applications.

• For example, a young individual with limited credit history may have a ...read more