11 Questions
What is verified when an individual applicant is employed in a family-owned firm?
Both the individual applicant and the company
What is the purpose of in-house file verification?
To verify the identity of the borrower or co-maker
What should a credit investigator do if they find that the applicant's name is similar to a defendant in a court case?
Pursue the investigation to determine whether the applicant is the same defendant
What is verified in the case of a corporate account?
Both the corporate entity and the owners or stockholders
Who is checked under both personal and trade/business name?
Self-employed borrower
What is the primary purpose of credit investigation?
To validate data about a loan applicant/borrower
What is the scope of in-house file verification?
On all credit applications except those rejected outright
Who is included in the in-house verification process?
The borrower's personal name, known aliases, trade or business name, and spouses
What is the purpose of court case verification?
To inquire against compilation of names of persons against whom collection cases have been filed
What type of information is gathered during credit investigation?
Enough relevant information about the borrower to aid in formulating a sound credit decision
Who may undergo credit investigation?
Third parties intending to establish a business relationship with the bank such as new depositors, other financial institutions, and job applicants
Learn about the purpose and methods of credit investigation in the finance sector, including in-house file verification and field verification. Understand how credit investigation helps in assessing the creditworthiness of applicants and preventing credit extension to risky individuals.
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