How do I become a certified credit analyst?
A credit analyst is responsible for determining the credit risk associated with a person applying for a credit/loan. They analyse the borrower’s financial data and help in determining the worthy borrowers who will return the loan on time. Credit risk analysts create reports based on their findings which is used by the banks in loan authorisation. Credit risk is affected by many factors such as collateral associated, paying capacity, credit history, etc. Credit analysts use various applications for evaluating the credit risk associated with any borrower. Credit analysis is witnessing technological reforms as new-age technologies like machine learning, big data analysis, etc. are helping in making more accurate credit analysis models.
How to Become a Credit Analyst?
Many sources offer a certification course for becoming a credit risk analyst. Association of International Wealth Management of India offers a CCRA (Certified Credit Research Analyst) which is a comprehensive education program and aims at providing credit risk analyst certification. You can also opt for various online certification programs in credit analysis. Imarticus Learning is a trusted source that can provide you online certification course in credit analysis. It is tough to opt for a college degree amidst the Covid-19 scenario, so getting a certification in a credit risk analyst course via an online medium is the right choice. Choosing an online medium for a credit analysis certification course will help you in studying at your own pace. It is good if you have a bachelor’s degree in finance, accounting, statistics, economics, etc. as it will help you with the prerequisites required for becoming a certified credit analyst.
Why Choose Imarticus Learning?
Imarticus Learning will help you in learning the fundamentals of the finance industry via industry experts with in-depth case studies. The industry-oriented learning approach of Imarticus will help you in getting industry-ready. You will also get placement support by opting for their online courses. You can opt for a demo class and can decide for yourself. Imarticus Learning is tied up with the leading players in the finance industry & has experienced faculties. You will also learn the aspects of credit analysis experimentally with case studies.
What to Learn?
The terminologies of credit analysis which you should be aware of to become a successful credit analyst are as follows:
• You should be aware of the credit analysis fundamentals like credit history, the capacity to pay, etc.
• You should be familiar with the cash flow cycle & analyses which helps in sustaining capital.
• You need to know how to manage a loan using security. Credit risk analysts are also good at risk identification & management.
• A good credit analyst knows about the loan covenants which are the conditions in a loan agreement.
• You should be able to administrate and document credit.
• You should know about the credit application and the loan processes.
• You should be able to use various software(s)/applications used for credit analysis in banks/financial institutions. One should also be aware of various credit risk models used to determine the risk associated.
• You should be able to read, analyse, and combine financial statements of the borrowers to calculate the risk associated.
Note: Make sure you choose a certification course in credit analysis that covers all the aforementioned aspects of credit analysis.
Credit risk analysts will be in huge demand in the coming years as firms/financial institutions require individuals who can help them in minimising losses. The good borrowers may also face problems in terms of capital if a financial institution encounters many NPAs/defaulters. To maintain the cash flow & capital in a bank/financial institution, credit risk analysis is necessary. Browse Imarticus Learning courses now!