CredAvenue Underwriting Analyst Interview: Rounds, Questions and Preparation

What the job involves

An Underwriting Analyst in neobanking, lending, and insurtech assesses creditworthiness of borrowers, typically MSMEs or individuals, using digital tools and alternative data. Day to day involves analysing financial statements, bank statements, GST returns, and bureau reports to recommend loan approvals, rejections, or modified terms. You will work closely with sales, risk, and product teams to balance growth with portfolio quality.

Role and Technical Knowledge

1. 1

   What are the key financial ratios you would look at when underwriting an MSME loan?

   Cover current ratio, debt-equity ratio, interest coverage ratio, and profitability margins. Explain how each indicates repayment capacity or risk.

2. 2

   How do you analyse a bank statement to assess a borrower's creditworthiness?

   Mention average balance, cheque bounces, cash withdrawals vs digital payments, EMI obligations, and regularity of receipts. Highlight red flags like sudden large deposits or frequent overdrafts.

3. 3

   What is the difference between CIBIL and Experian reports, and how do you use them in underwriting?

   Both are credit bureaus but may have different scores and lender reporting. Explain how you check score, DPD (days past due), enquiry history, and write-off status to decide approval or rejection.

4. 4

   What are the RBI guidelines for digital lending that an underwriter must follow?

   Mention rules on data privacy, consent, disbursal to borrower's bank account, no automatic credit limit increase, and grievance redressal. Show awareness of compliance in neobanking.

Practical Scenarios and Case Questions

1. 5

   A borrower has a CIBIL score of 720 but high cheque bounces in the last 6 months. How would you proceed?

   Acknowledge score is decent but bounces indicate cash flow stress. Suggest deeper bank statement analysis, asking for reason, possibly reducing loan amount or seeking collateral.

2. 6

   You are underwriting a loan for a small trader who files GST but ITR shows lower income. What do you do?

   Reconcile GST turnover with ITR and bank deposits. If mismatch is large, treat as risk and ask for explanation or additional documents. Consider using GST as primary income proof if reliable.

3. 7

   How would you assess a borrower with no credit history but regular digital transactions?

   Use alternative data like UPI history, e-commerce sales, utility payments. Suggest starting with a small ticket loan and monitoring repayment behaviour.

4. 8

   What steps would you take if a loan application shows a sudden spike in revenue in the last quarter?

   Investigate if it is seasonal, one-time, or inflated. Check corresponding bank credits, invoices, and GST filings. If unexplained, flag as potential fraud and request more documents.

Behavioural and Situational Questions

1. 9

   Tell me about a time you had to make a decision with incomplete information.

   Use STAR method. Show how you gathered available data, assessed risks, and made a reasoned call. Link to underwriting mindset.

2. 10

   How would you handle a situation where a sales colleague pressures you to approve a risky loan?

   Emphasise adherence to policy and risk guidelines. Suggest explaining your rationale and offering alternative structures like lower amount or additional collateral.

3. 11

   Describe a time you worked in a team to meet a tight deadline.

   Highlight collaboration, prioritisation, and communication. Underwriting often involves quick turnarounds, so show you can stay accurate under pressure.

4. 12

   Why do you want to work in underwriting at a neobanking or lending fintech?

   Show passion for credit risk, technology-driven lending, and financial inclusion. Mention how underwriting directly impacts portfolio health and customer experience.

HR and Company Fit Questions

1. 13

   What do you know about CredAvenue and its business model?

   Research the company: it is a debt marketplace connecting borrowers and lenders. Mention its role in MSME lending, co-lending, and use of technology. Avoid claiming specific interview details.

2. 14

   How do you stay updated on RBI regulations and credit risk trends?

   Mention following RBI circulars, financial news, LinkedIn, and industry reports. Show proactive learning.

3. 15

   Where do you see yourself in 3 years in this role?

   Show ambition to grow into senior underwriting or risk management. Emphasise deepening domain expertise and contributing to policy improvements.

4. 16

   What is your expected salary for this role as a fresher?

   Research typical fresher salaries in fintech underwriting (e.g., 3-6 LPA). Give a range and express flexibility based on learning and growth.