You are a brand new loan officer at Lakshmi Vilas Bank. Your boss gives you two...
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You are a brand new loan officer at Lakshmi Vilas Bank. Your boss gives you two customer files for you to analyze: File #1 - Ram Charan Singh needs to purchase a car to get to his new job. His salary will be $5,000 monthly. He has been good about saving and has $15,000 in his savings account at your bank. The car he wants to purchase will cost him $15,000 with 3% interest and 4-year loan term, his monthly payment would be $322. His credit report shows he pays on time and only has one credit card. File #2 - Amruta Modgal has been unemployed for the past six months. She had a great job and loved to buy new clothes and go out with her friends, so she only has $7,000 in her savings account. She needs the new car to go for job interviews. The car Amruta wants to purchase will cost her $20,000 with 3% interest and 4-year loan term, her monthly payment would be $442. Her credit report shows a few late payments during the past six months and she has three credit cards. a. What are the 5 C's of Credit Analysis? Name and Explain each C succinctly. b. Whom should the bank lend the money based on the 5 C's of Credit Analysis? [2.5] [2.5] You are a brand new loan officer at Lakshmi Vilas Bank. Your boss gives you two customer files for you to analyze: File #1 - Ram Charan Singh needs to purchase a car to get to his new job. His salary will be $5,000 monthly. He has been good about saving and has $15,000 in his savings account at your bank. The car he wants to purchase will cost him $15,000 with 3% interest and 4-year loan term, his monthly payment would be $322. His credit report shows he pays on time and only has one credit card. File #2 - Amruta Modgal has been unemployed for the past six months. She had a great job and loved to buy new clothes and go out with her friends, so she only has $7,000 in her savings account. She needs the new car to go for job interviews. The car Amruta wants to purchase will cost her $20,000 with 3% interest and 4-year loan term, her monthly payment would be $442. Her credit report shows a few late payments during the past six months and she has three credit cards. a. What are the 5 C's of Credit Analysis? Name and Explain each C succinctly. b. Whom should the bank lend the money based on the 5 C's of Credit Analysis? [2.5] [2.5]
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Answer rating: 100% (QA)
a The 5 Cs of Credit Analysis are 1 Character This refers to the borrowers credit history and reputation It is assessed by looking at the borrowers cr... View the full answer
Related Book For
Marketing The Core
ISBN: 978-0078028922
5th edition
Authors: Roger A. Kerin, Steven W. Hartley, William Rudelius
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