Credit Analyst Career Description

By | June 2, 2011

Credit Analyst Career Description

A credit analyst is primarily responsible to verify loan portfolios and approve them. They work with the bank loan officers and bank managers and decide on the bank’s investment decisions. Some of the main elements of lending decisions of the bank is increasing the loan portfolio and maintaining loan quality. A credit analyst follows the general lending guidelines of the bank in deciding whether or not to extend credit. Banks also have to extend loans to certain sectors. This is also taken into account while deciding in the credit to be extended by the bank. After deciding to approve the loan document, a credit analyst will send the document to the top management for sanctioning.

Credit Analyst Job Career Description

  • A credit analysis should understand the balance between the loan quality and profitability of the firm and maintain it.
  • They need to accept loan documents from the clients and analyse them according to the credit appraisal procedure of the bank.
  • They need to send the document after approval to the higher management for loan sanctioning.
  • In the credit appraisal procedure, some of the important components to check are the type and quality of collateral, loan history of the borrower, interest payment period, cost of borrowing, financial projections, etc.
  • They also need to conduct due diligence procedure by checking the borrower’s address, workplace, industrial relations, etc.
  • They should then prepare documentation with recommendations for acceptance or rejection of the loan proposal.

Credit Analyst Career Salary

Credit analysts will find innumerable opportunities in the field of banking, financial services, manufacturing and distribution, mortgage lending, auto lending, financing, etc.  Candidates who have at least a couple of years of relevant experience will find it as a valuable advantage to get into this sector. The annual compensation of a credit analyst is in the range $31,000 to $65,000.