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How to Become a Credit Analyst in India?

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credit analyst

A credit analyst evaluates and analyses a firm, an individual, or a bank’s creditworthiness. The work of determining whether a business, an individual or other organisations can repay debts and loans on time is a risky and a great responsibility. If you want to become a Credit analyst, this blog is for you! Continue to read the roles and responsibilities, benefits of this role, top recruiters, salary and more.

Credit Analyst: Who are They?

The Credit analyst job mainly involves focusing on and analysing the Financial data of the Client.  They evaluate the application of loan and credit applicants with the standard range of prose and the purpose of the application.

Industry Financial sector
Eligibility Bachelor’s Degree in Accounting, Finance & Banking 
Average Salary INR 5Lakh-INR 14Lakh
Key Responsibility The primary role is to assess the creditworthiness of an individual or company.

Role and Responsibilities

The followings are the roles and responsibilities of a Credit Analyst. Check them out!

  • Evaluating Credit Risk 
  • Analyse Financial Data 
  • Review the credits limit of existing customers 
  • Due Diligence
  • Ability to multitask 
  • Well-versed in Financial Software 
  • Knowledge of industry
  • Documentation Organisational Analysis 

Must Read: MBA in Banking and Finance

Type of Credit Analysts

Various jobs are offered to Credit Analysts in banks, firms, financial organizations, companies and many more. Let us discuss some of the types of Credit Analysts:

  • Commercial Credit Analyst
  • Credit Research Analyst 
  • Credit and Collocation Analyst 

How to Become a Credit Analyst?

Here are the steps to pursue your career in credit analysis and the qualifications that you require.

Bachelor’s Degree 

Candidate must be a bachelor’s degree holder in the field of finance and also have a good interest in accounting and finance.

Gain Experience in an Entry-Level Position

Join an entry-level position related to finance and accounting to get exposure and brush up on your skill and get more insight into a related field.

Purse a Certification Course

Select a certification course that is suitable and good for your profile also certification helps you to add value to your Resume.

Update Your Resume 

Add value to your resume by getting good experience and also add some certification courses to your profile.

How to Become a Credit Analyst In Abroad 

These are some of the Abroad universities/colleges which offer credit analysis courses:

Country Top College/ Universities  Educational Requirement 
UKThe University Of Cambridge 
The University Of Oxford
Imperial School of London
The University Of Edinburgh 
10+12 with 60%
Bachelors with minimum 60%
Masters with 60%

IELTS, TOFEL, PTE, etc.
Canada The University of Toronto
University Of waterloo
McMaster University 
Concordia University 
10+12 with 60%
Bachelors with minimum 60%
Masters with 60%
IELTS,
TOFEL, PTE, etc.
Australia University Of New South Wales 
The University Of Melbourne
Monash University 
The Australian National University 
10+12 with 60%
Bachelors with minimum
60%

Masters with 60%
IELTS, TOFEL,
PTE, etc.

Courses to Become a Credit Analyst 

At least two to three years of experience working in a quantitative and analyst capacity are required for credit analysts. It is necessary to have a bachelor’s degree in finance, economics, accounting, mathematics, or physics; a master’s degree in one of these subjects is desirable.

In order to pursue a career in this role, the candidates must pursue relevant courses at the various diploma, undergraduate and postgraduate levels. Some relevant courses are BCom in Financial accounting, BCom in Finance, BSc Finance, and many more. 

Certification Course For Credit Analyst 

  • Credit Risk Certification (CRC)
  • Professional Certificate in Credit.
  • Credit Business Associate (CBA)
  • Credit Business Fellow (CBF)
  • Certified Credit Executive (CCE)

Relevant Read: Financial Analyst Courses

Benefits of Credit Analyst 

The following are the benefits of pursuing the role of a credit analyst:

  • Job opportunities
  • Job Security
  • Career growth
  • Unique Experience 
  • Quick Salary Increment 

Skills Required For Credit Analyst 

Here are the skills required to pursue a career in this role. Check these out:

Top Recruiters of Credit Analysts 

These are some top recruiters, hiring candidates for this role. Have a look:

  • Northern Trust
  • TATA CAPITAL
  • Novartis
  • HP Inc
  • Accenture
  • ANZ Bank
  • eClerx
  • American Express
  • Reliance Industries Ltd

Relevant Read: CFA Chartered Financial Analyst Course

Salary Of Credit Analyst 

Bellow given table gives you an idea about 

Top Companies Average Salary 
CitiINR 4.2 LPA
ICICI Bank INR 5 LPA 
American ExpressINR 3.9 LPA 
CRISILINR 2.5 LPA 
A&ZINR 4 LPA 
Barclays INR 4.5 LPA 
Axis BankINR 6.1 LPA 
HDFC Bank INR 5 INR
J.P MorganINR 7 LPA 

Experience-Wise Salary 

Total Experience Average income Salary 
0-1INR 3,95,000
1-4INR 5,23,000
4-9INR 9,35,000
10 years & AboveINR 12,09,000

Relevant Read: How to Become a Tax Analyst?

FAQ’s 

Q1. How do you interview a credit analyst?

Ans. Here are the Most Common Credit Analyst Interview Questions:
What is a reasonable Debt/Capital ratio? 
How would you decide if you can lend $100 million to a company? 
What do credit rating agencies do? 
What is the current LIBOR rate? 
What is Free Cash Flow?

Q2. What is the salary of a credit analyst at Axis Bank?

Ans. Credit Analyst salary at Axis Bank India ranges between ₹ 3.0 Lakhs to ₹ 14.5 Lakhs, while the average Axis Bank salary for this role in India is ₹ 8.2 Lakhs for experience between 1 year to 7 years.

Q3. What are the 7 Cs of credit analysis?

Ans. The 7Cs credit appraisal model:
Character
Capacity
Collateral
Contribution
Control
Condition and Common sense have elements that comprehensively cover the entire areas that affect risk assessment and credit evaluation.

This was all about How to become a Credit Analyst. If you want to pursue education from abroad or know more about us good job opportunities, our experts at Leverage edu can help you explore the various programs offered around the world and assist you to find a suitable one as per your interests. Call us immediately at 1800 57 2000 for a free 30-minute counselling session

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