An updated skills list a credit analyst must possess
The job of a credit analyst is to analyse whether a person or an organisation is capable of paying off their debts in the coming future. They make the call on whether the loan will be sanctioned or not. A credit analyst analyses the past payment history of the individual and decides their credit worthiness. A credit analyst plays an essential role to assess the merits or lacuna of an organisation or person who is requesting credit.
A credit analyst helps in controlling the bad debt of the institution they are working for. A career as a credit analyst is highly challenging and interesting at the same time. Since the outflow of a financial institution’s money and its timely recovery is a very important affair, the role of a credit analyst becomes extremely crucial.
They are hired by institutions like Government or private banks, non-bank financial corporations and credit rating agencies. Some of the credit rating agencies in India are CRISIL, CARE and ICRA.
The skills set that a credit analyst must possess are as follows -
- A credit analyst must have a good understanding of matters of financial parameters like index, shares, stocks, reserves and debentures. The credit analyst should review these parameters of the organisation asking for loans in order to have a clear picture regarding the past performance.
- A credit analyst must have knowledge of different businesses and industries and their growth graphs. This knowledge is required to understand how capable an organisation is to repay the loan within the committed period of time.
- A credit analyst must have the capability to judge the collaterals properly. Equivalent collateral in the form of a property’s papers, policies etc has to be provided by the borrower to cover the risk of any possible default.
- The credit analyst must also study the reputation of the said organisation in terms of its paying back its past loans and also to its vendors and creditors. This also includes the organisation’s behaviour of paying the employees.
- There are certain credit rating agencies that publish the credit reports of various companies. The credit analyst has to follow these reports and on the basis of this report, they decide whether a company is capable of getting a loan or not.
- The banks do their due diligence not only for the organisations who seek loans for their new projects but also for the individuals aspiring to own a property, a car or any other asset. In order to judge an individual on account of his/her credibility to repay the loan within the committed period, a credit analyst would refer to his/her CIBIL score. The Credit Information Bureau (India) Limited is an institution which records even the credit scores of an individual. The top score is 900 and scores that are within 750-900 are considered to be creditworthy. The banks offer their best (lowest) interest rates for those individuals who have their CIBIL score within the mentioned range. For others, the interest rates will be higher to offset the risk of recovery.
Conclusion
A career as a credit analyst is a very tough grind because the backbone of any institution depends on the person’s ability to analyse the financial situation of the firm. Therefore, for a person who will be opting for this career, it is very important to choose the right credit analyst course.
The credit analyst online training course at Imarticus will help you to achieve your desired goal. The program is in collaboration with moody’s analytics. With the help of this course, you get to learn job-relevant skills and gain industry certifications. The mode of conducting the course here is live online training. Thus, this course will fully guide you and prepare you for the financial world.
