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CREDIT ANALYSIS (LOAN STRUCTURES (:check: Amount
:warning:must be…
CREDIT ANALYSIS
LOAN STRUCTURES
:check: Amount
:warning:must be adequate according the types of loan.
:warning:based on net salaries / commitment of borrower's
exp : personal loan max 35 times of salaries by Bank Rakyat, max Rm200000
:check: Duration
:+1:based on the type of risks associated with the loan
:+1:depends on borrowers capabilities short / long term periods
:+1:exp : personal loan (max 10 years), housing loan (max 30 years), hire purchase (max 9 years)
:check: Availability
:lock:Based on demand in the market
:lock: such as associated with the risk such as inflation, deflation, gov policy, BNM policy
:lock:Exp: Personal loan of offered by the bank rakyat ~ open for gov servants, private & public.
:lock:Offer the lowest of interest rate in the market.
:check: Purpose
:warning: not for gambling, money laundering, smuggling activities & others.
:warning:Based on customer's intention / need that applying the loan.
Exp: Business loan use for working capital & investment in fixed assets.
:check: Direct & Indirect Exposure :zap: Micro - more industry / parties / segmentation.
Exp: competititor's, supplier's, new product, customers 
:zap: Macro - More on factors that will effects on credit
Exp: Politic, economy, social & technology.
:check:Collateral
:tada: Any assets acceptance by bank as collateral or pledging for liquidation if borrower's fails to make repayment according to specific period given.
:tada: Based on the market value of assets such as land, building, residential properties & others.
Exp: Land price increasing because of limited assets & highly demand.
:check: Appropriate term & condition ( loan covenant)
:red_flag:Stated in agreement that policy must be followed by borrower's
:red_flag:Customer's compulsory read all the term & condition because after signed, must fulfil & responsible on it.
:red_flag:Written evidence can be use in legal action
Exp: Housing loan can't be settlement earlier because of interest or profit associated with risks, period & demand.
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🐌 PAST SEMESTER
JAN 2018
Explain the three (3) types of credit analysis (10m)
- Facts analysis
- Qualitative analysis
- Quantitative analysis
Explain the steps involved in loan applicants' credit analysis (10m)
- Collecting and analyzing information about the loan applicant
- Collecting and analyzing information about the credit event
- Assessing the credit risk
- Checking the reliability of the information provided by the loan applicant
- Preparing an analysis of the credit risk
- Taking a decision
- Setting the credit terms
MAR 2017
List any five (5) components under loan structure (5m)
- Amount
- Tenor
- Availability
- Direct or indirect exposure
- Collateral
Facts analysis is an example of credit analysis. Explain two (2)components under facts analysis (5m)
- Assess track record
- Assess shareholders and directors
OCT 2016
Explain how the checking of information is important to ensure the information is valid and reliable in making decision for loan approval (10m) - The bank should carry out cross checks, which will give a clear idea about the company's equipment, the professional qualification of the administrative and managerial staff, the type and quality of the production, the quality of service, the general social climate in the company and the working conditions.
MAR 2016
Explain the three (3) types of credit analysis (8m)
- Facts analysis
- Qualitative analysis
- Quantitative analysis
SEPT 2015
What is the purpose of credit analysis? (4m)
- To provide the best loan to customer according to their needs
- Ensure compliance with regulations and bank policy
- Keep the goodwill of the consumer
- Ensure the level of risk is acceptable
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SOURCES OF CREDIT ANALYSIS
1) Integrated Technology
:pencil2: CCRIS (Credit Checking Reference Information System)
:pencil2: CTOS (Convergent Technologies Operating System)
2) References
:pencil2:Members
:pencil2: Employers
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