What lending and credit basics must you know before a loan-desk interview?

A loan-desk interview isn't really testing whether you've memorized RBI circulars — it's checking whether you understand how money moves from a bank's or NBFC's balance sheet into a borrower's hands, and what stops it from coming back. Get these five areas solid and you can handle almost any question they throw at you.

1. Know Your Loan Categories

You should be able to rattle off the difference between secured loans (home, auto, loan against property — backed by collateral) and unsecured loans (personal loans, credit cards — backed only by the borrower's promise and credit history). Interviewers also expect you to know retail vs corporate/SME lending, since the appraisal process differs a lot between the two.

2. The Five Cs of Credit Appraisal

This is the backbone of almost every credit conversation:

• Character — the borrower's repayment history and intent
• Capacity — income and cash flow to service the loan (this is where you'll hear terms like FOIR — Fixed Obligation to Income Ratio)
• Capital — the borrower's own stake or net worth
• Collateral — security offered against the loan
• Conditions — the purpose of the loan and the economic environment it's being given in

Be ready to explain how each of these gets checked in practice — bank statements, ITRs, salary slips, credit bureau reports.

3. Documentation and KYC

Know the standard KYC document list (PAN, Aadhaar, address proof, income proof) and why banks insist on it — it's not just compliance, it's the first line of fraud prevention. If you've read about the RBI's KYC Master Direction, even a basic mention shows you've done real homework rather than generic prep.

4. Credit Score Basics

You need a working understanding of CIBIL and other bureau scores — what range counts as good (750+), what pulls a score down (missed EMIs, high credit utilization, multiple loan enquiries in a short span), and how lenders use the score alongside internal risk models rather than as the sole decision factor.

5. NPA and Recovery

Interviewers like to test whether you understand what happens after disbursement. Know the basic NPA classification timeline (overdue for 90+ days), the difference between substandard, doubtful, and loss assets, and that recovery isn't just about calling up defaulters — it involves restructuring, SARFAESI action, and write-offs depending on the case.

Questions You're Likely to Be Asked

Expect a mix of definition checks ("What is FOIR?", "What's the difference between a CC and OD account?") and scenario questions ("A customer has a 650 CIBIL score and wants a personal loan — what would you check before approving?"). The scenario questions matter more — they're testing judgment, not recall, so practice explaining your reasoning out loud, not just the textbook answer.

If you walk in able to connect these five areas back to a real example — even a hypothetical loan file you talk through — you'll stand out from candidates who only memorized definitions.

If you want structured, practical training in exactly this — loan appraisal, credit analysis, and the interview-facing skills that go with it — AKROS Solution's retail banking programs are built around real loan-desk workflows, not just theory.