What are The Interview Questions For a Credit Analyst?

July 30, 2018
Credit Analyst Interview

The job of a credit analyst is on high demand these days, and if you are looking forward to making a career out of it, you should be ready to face tough, stressful interview which will determine if you prepare for the job.

Credit analysts are supposed to pay attention to the minutest details, not overlooking any signs of suspect or fraud. Thus, the interview questions revolve around how they will get the job done within the deadlines and also in an excellent level to satisfy their employers.

Here are types of questions you can expect in your interview.

Finance questions

The role requires in-depth financial knowledge as a large chunk of their time will be spent in studying financial records. They need to research income statements and bank records to make sure that the client is worthy of the loan. They draw economic models based on the analysis they conduct and compare their company’s valuation against that of the potential customer. You must also have sound knowledge of various tools and techniques such as Microsoft Excel and SPSS.

Also Read: Roles of a Research Analyst in India

Sample finance questions:

  1. What is the role of a credit rating agency?
  2. What do you mean by terminal value?
  3. Explain the concept of Free Cash Flow.
  4. If you were asked to lend $10 million to a client, what are the various parameters you will take into account and how will you proceed with the decision.
  5. Do you know the current LIBOR, CRR and treasury rate?
  6. Which method will you use to generate financial ratios and understand a client’s economic status?
  7. Compare and contrast the profitability, liquidity and credit history of corporations.

Credit Analyst interview

Work Experience Questions

This segment of the article only applies to you if you have already served as a credit analyst and are now looking forward to changing your company and promote yourself to the position of senior credit analyst. The interview will touch upon various sections of your past work including previous job profile, the assignments and projects which you completed, the learnings from there and most importantly, a reason to leave the job. These questions are not tricky or unpredictable, but you should be thoroughly ready with them so that it gives you an upper hand.

Sample work experience questions:

  1. Tell us about an experience where you faced a complaint or stressful situation which you were able to sort out using your presence of mind.
  2. Have you ever received the opportunity to guide or mentor someone in your previous job? How did you manage it and did you notice any progress in that individual concerning skills?
  3. Describe a situation at your previous workplace where you identified a problem while dealing with a project and handled it. How did it benefit your employer?
  4. Have you applied any new resources or technology in your previous job? What was it and how did your colleagues benefit from it?
  5. Tell us about a method you used to determine the profitability and worthiness of loans.

Industry know-how questions

Every industry you enter will require a few fundamental industry questions which you must be aware. You must prepare the famous and current names of stakeholders and industry verticals. You must be well versed with significant ongoing projects. It will show them that you are interested in the position you are applying.

Sample industry questions:

  1. Describe a few characteristics which must be present in a credit analyst.
  2. Are you skilled at financial software and technology and up to which level?
  3. Tell us about the process to extend credit to a customer in brief.
  4. Which are the skill sets which you possess are best suited for this position?

Apart from these, there will be many personal questions and common questions which you will face for any job which you apply. These will ensure that your resume is verified and you fit into the work culture of the company. It will portray your behavior, ethics, ability to handle stress and may highlight your strengths and weaknesses. We hope that this guide will be helpful to you in your preparation for your dream role.

All the best!

Related Article: How to Become a Research Analyst in India?

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