How to Become a Credit Manager in India?

6 minute read
How to become a Credit Manager in India?

Finance and banking provide numerous fascinating work opportunities for analytical folks. Consider becoming a credit manager if you appreciate mixing mathematical analysis with people-centred decision-making. Credit managers work as part of a team to make loan-related decisions for a business or bank. In this article, we describe what a credit manager performs, detail the prerequisites to becoming a credit manager, and examine the potential compensation and career outlook of a credit manager. Read on to know more about becoming a Credit Manager in India.

Who is a Credit Manager?

A credit manager is in charge of reviewing and supervising the credit-granting process for a business, bank, or other lending institution. Credit scores, risk predictions, and other indicators may be used to assess if a potential consumer should be approved for a loan. Credit managers may assess the creditworthiness of individuals, enterprises, or present customers. Overall, the goal is to reduce loan-related losses while increasing business profit.

A credit manager may also contact upper-level management and supervise department staff. Although they may interact and connect with potential consumers, their primary responsibility is to examine, approve, or deny loan applications. This distinguishes credit managers from loan officers, who are more inclined to collaborate with prospective customers to strengthen their loan requests.

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Roles and Responsibilities

The day-to-day responsibilities of a Credit Manager include:

  • Assessing potential clients’ creditworthiness.
  • Developing risk assessment credit scoring models.
  • Loan approval and rejection based on available facts.
  • Loan interest rates are calculated and established.
  • Discuss loan arrangements with new customers.
  • Ensure that all loans and lending procedures adhere to regulations.
  • Keeping track of all corporate loans.
  • Monitoring loan payments and bad debts.
  • Assessing and amending the company’s credit policy.

Types of Credit Managers

A credit manager can be of many different types. Details of the main categories of credit managers are presented below.

  • Commercial Credit Manager: Commercial credit managers are in charge of several tasks, such as boosting sales, entering new international markets, improving financing terms, cutting down on bad debt reserves, having actionable economic knowledge, safeguarding against non-payment and catastrophic loss, raising sales and profits, and improving relationships with lenders.
  • Consumer Credit Manager: One’s duties as a consumer credit manager or specialist include contacting late-paying clients by mail and phone. They are in charge of the department that handles company collections. These credit management positions involve supervising the workforce to ensure that any money owed to the company is billed and received accurately and on time.
  • Construction Credit Manager: Construction credit managers must set standards and monetary limits for the credit they are required to grant. Customers may also be required to pay a portion of the total amount owed in advance for these kinds of credit management positions. They must create many types of paperwork, such as credit applications, sales contracts, purchase orders, bills of lading, delivery receipts, invoices, correspondence, and so forth.
  • Certified Management Accountant: Financial accounting expertise and strategic leadership are required for a job as a qualified management accountant. The Management Accountant Institute awards the management accountant certification, and candidates must satisfy other prerequisites in addition to successfully passing the two-stage exam. Since passing the exam, certified management accountants have had a wide range of professional options.
  • Chartered Accountant: The profession of a chartered accountant is regarded as an honorable one. A chartered accountant in the public sector needs to possess strong managerial and decision-making abilities. The role of a chartered accountant is to uphold the integrity of public spending ensuring thorough resource monitoring and successful delivery to give taxpayers value for their money.

Skills Required

Some of the most important skills of a credit manager are listed here.

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How to Become a Credit Manager?

Do you want to learn how to become a credit manager? The steps to becoming a credit manager after the 12th are listed below.

Complete your High School Education

Students must understand how to become credit managers in India after completing their secondary education. Students must have completed their 10+2 in commerce or with topics such as mathematics, accounting, business studies, economics, or statistics with a grade point average of 60% from a recognized board.

Give Entrance Exams

Commerce students can take a variety of entrance tests to gain admission to any reputable university in India.


Get a Bachelor’s Degree

After successfully completing the twelfth standard, students must pursue a bachelor’s degree in any of the commerce-related programs. Finance, marketing, sales, and accounting are some of the most popular streams in the commerce division. Candidates may select any of the following options. Applicants must have an excellent academic record and be familiar with the applications of the skills taught during the course. The most popular courses taken by the majority of the students are BBA and BCom.

Opt for a Master’s Degree

Post-graduate education allows students to excel and perfect themselves in a certain sector rather than working in general. To be considered for the position of credit manager, candidates must have a minimum of five years of experience, regardless of post-graduation.

The master’s degree solely serves to assist candidates to hone their talents in a certain sector and get in-depth knowledge of their department. Candidates must get as much experience as possible in order to be considered for Credit Management. Postgraduate Credit Management courses are also available if you wish to become a Credit Manager. The most popular courses taken by the majority of the students are MCom, MBA, and MSc.

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In India, credit managers typically receive significant compensation. However, in the early stages of this profession, a candidate may be necessary to get some BFS sector experience in areas where the wage package may not be as appealing.

Professionals in this field should also be aware that a percentage of their remuneration package for credit managers may be incentivized based on performance. As a result, high-performing experts in this industry will be able to earn better pay. Credit managers can earn enough money to live a nice lifestyle with expertise and advancement. The average salary of credit managers in India is given below.

  • A credit manager’s typical compensation in India is roughly Rs. 9 – 10 LPA.
  • Entry-level work in this industry might pay between Rs. 4 and 5 LPA.
  • Credit management professionals with 5 – 6 years of experience can expect higher-than-average wages in the region of Rs. 15 – 20 LF.
  • Professionals with 10+ years of expertise can easily exceed Rs. 30 LPA.

Top Recruiters

Some of the top companies recruiting credit managers in India are listed below.

State Bank of India

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Pros and Cons of the Job

Like every other job, becoming a credit manager has its own set of pros and cons. Check the advantages and disadvantages of this role below:


  • Extensive prospects for advancement as a Credit Risk Manager.
  • As you gain experience, your remuneration package grows dramatically.
  • Job security is typically high in banks and financial companies.


  • The workload might fluctuate, and the job can become stressful.
  • Professionals are frequently needed to work long hours;
  • The area requires a high level of knowledge
  • Postgraduate study is virtually always required.

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Q1. What does a Credit Manager do?

Ans. Credit Managers are responsible for developing credit rating models, negotiating loan terms, and determining interest rates. You should have a degree in accounting or finance as well as experience processing loan applications to be successful in this profession.

Q2. What is the salary of a CA Credit Manager in India?

Ans. Credit Manager salaries in India range from 3.0 Lakhs to 12.5 Lakhs per year, with an average yearly income of 6.0 Lakhs.

Q3. What is the salary of the credit head?

Ans. Credit Head salaries in India range from 3.2 Lakhs to 44.1 Lakhs per year, with an average yearly income of 10.0 Lakhs.

This was all about how you can become a Credit Manager in India. Stay tuned with Leverage Edu to discover various job opportunities in India. Connect with us on Instagram, Facebook, LinkedIn, and Twitter to get regular updates regarding careers in India.

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