The borrower's credit rating is one ofkey points of the lending process. This is a well-founded action by financial institutions, since the correctness of the assessment of the borrower's ability to repay the loan and the interest on it directly affects the following parameters of the bank - risk, quality of the loan portfolio, the potential level of debt repayment, the occurrence of late payments, and, as a result, the total profit credit organization.
As a rule, a single, universal method forall financial institutions do not exist. In each bank, loan officers develop an individual credit rating of the borrower. However, common points are still present in the methods of banks, although they are composed of completely different people.
Naturally, the initial level of assessmentIt starts with the definition of a borrower as an individual or a legal entity. Analysis of the creditworthiness of the borrower as a legal entity is a very laborious process, it is based on a variety of models and methods for assessing financial condition and solvency. First of all, it considers the initial financial statements of the company, in particular, the structure and dynamics of financial flows, liabilities and assets of the organization, as well as the coefficients characterizing the financial condition of the company.
If a legal entity can present a hugethe number of documents on the basis of which you can conduct a financial analysis, the assessment of the creditworthiness of the borrower as an individual is carried out in a completely different way.
Background information on solvency privatethe borrower includes the following parameters - the dynamics of income, the level of expenditures at the moment, the presence of credit, administrative and other obligations.
Стоит отметить, что отношение к частным лицам more loyal, since many credit institutions take into account not only documented incomes, but also subjective facts that the client cannot confirm. The method of simple arithmetic operations — incomes minus expenses and liabilities — is determined by credit experts by the ability of a client to repay a loan. It is quite natural that if the borrower’s net income level is insufficient, the application will not be approved. If the amount of the monthly loan payment will be more than 50% of the amount of income, most often the answer will also be negative.
The borrower's credit rating depends ontype of lending. For example, recently the scoring technique based on the analysis of the minimum amount of information about the borrower has been widely used. In particular, it considers such parameters as the age of the client, his labor and social status and, of course, income. As a rule, the decision on such loans is made in the shortest possible time, some banks offer registration in just an hour.
