Loan Processor Interview Preparation Guide
Prepare comprehensively for your Loan Processing interview with our extensive list of 103 questions. Each question is crafted to challenge your understanding and proficiency in Loan Processing. Suitable for all skill levels, these questions are essential for effective preparation. Secure the free PDF to access all 103 questions and guarantee your preparation for your Loan Processing interview. This guide is crucial for enhancing your readiness and self-assurance.103 Loan Processing Questions and Answers:
1 :: Do you know what is ‘Loan grading'?
The classification of loan based on various risks and parameters like repayment risk, borrower's credit history etc. is known as ‘loan grading'. This system places loan on one to six categories, based on the stability and risk associated with the loan.
2 :: Tell me what is ‘Credit Check'?
A credit check or a credit report is done by the bank on a basis of an individual's financial credit. It is done in order to make sure that an individual is capable enough of meeting the financial obligation for its business or any other monetary transaction. The credit check is done keeping few aspects in concern like your liabilities, assets, income etc.
3 :: Tell us what is your greatest weakness and what are you doing to improve it?
Speaking my mind. I am reserved and tactful, and sometimes withhold my opinion when it may be used to serve a purpose. Speak to a situation, not an individual. When speaking to a scenario, one can tactfully express opinion.
4 :: Explain what is cashier's cheque?
A cashier cheque issued by the bank on behalf of the customer and takes the guarantee for the payment. The payment is done from the bank's own funds and signed by the cashier. The cashier cheque is issued when rapid settlement is necessary.
5 :: Tell me how to analyze credit?
A processor should have the ability to analyze a credit report regardless of what credit bureau or repository provided it. In addition to understanding the content of the report, the processor should know what documentation is required to address that credit profile.
6 :: Tell me what is the ‘cost of debt'?
When any company borrows funds, from a financial institution (bank) or other resources the interest paid on that amount is known as ‘cost of debt'.
7 :: Tell me what do you mean by term ‘Usury'?
When a loan is charged with high interest rate illegally then it is referred as ‘Usury'. Usury rates are generally set by State Law.
8 :: Tell me what is the card based payments?
There are two types of card payments
a) Credit Card
b) Debit Card
a) Credit Card
b) Debit Card
9 :: Explain me what do you mean by term ‘Loan Maturity' and ‘Yield'?
The date on which the principal amount of a loan becomes due and payable is known as ‘Loan Maturity'. Yield is commonly referred as the dividend, interest or return the investor receives from a security like stock or bond, interest on fix deposit etc. For example, any investment for $10,000 at interest rate of 4.25%, will give you a yield of $425.
10 :: Explain what is ‘balloon payment'?
The ‘balloon payment' is the final lump sum payment that is due. When the entire loan payment is not amortized over the life of the loan, the remaining balance is due as the final repayment to the lender. Balloon payment can occur within an adjustable rate or fixed rate mortgage.