The credit rating of the borrower is one of thethe most important moments of the lending process. This is a well-grounded action on the part of financial institutions, since the correct assessment of the borrower's ability to pay the loan and interest on it directly affects the following parameters of the bank: the risk, the quality of the loan portfolio, the potential level of debt repayment, the emergence of late payments, and, consequently, the final profit credit organization.
As a rule, a unified, universal methodology forall financial institutions do not exist. In each bank, credit specialists develop an individual credit rating of the borrower. However, the general moments are still present in the methods of banks, although they are composed entirely different people.
Naturally, the initial level of evaluationbegins with the definition of the borrower as a natural or legal person. 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 the financial condition and solvency. First of all, we consider the company's initial financial statements, in particular, the structure and dynamics of the company's financial flows, liabilities and assets, as well as the coefficients that characterize the financial condition of the company.
If a legal entity can submit a hugethe number of documents on the basis of which it is possible to conduct a financial analysis, then the assessment of the creditworthiness of the borrower as an individual is carried out according to an absolutely different scheme.
Initial information on the solvency of a privateThe borrower includes the following parameters - the dynamics of income, the level of expenditure at the moment, the availability of credit, administrative and other liabilities.
It is worth noting that the attitude towards individualsmore loyal, since many credit institutions take into account not only documented income, but also subjective facts that the client can not confirm. By the method of simple arithmetic operations - income minus expenses and liabilities - credit specialists determine the ability of the client to repay a loan. It is only natural that with an insufficient level of net income of the borrower, the application will not be approved. If the monthly payment for a loan is more than 50% of the amount of income, the answer is usually also negative.
The credit rating of the borrower depends ontype of lending. For example, recently scoring methodology based on the analysis of the minimum amount of information about the borrower is widely used. In particular, here we consider 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 taken in the shortest possible time, some banks offer registration in just an hour.
