Foreclosure Processes Overview

Questions and Answers

What must be assessed for the income of the applicant and co-applicant?

Previous tax filings

Business income as per the cash flow template (correct)

Projected income for the next year

Total assets owned by the applicant

What methodology is suggested for determining net income from the business?

Triangulation (correct)

Annual percentage growth calculation

Linear regression analysis

Accounting for depreciation

Which individual is responsible for approving any waivers or deviations?

Chief Financial Officer

Chief Business Officer (correct)

Loan Officer

Branch Manager

What type of income is NOT mentioned in the guidance for income assessment?

Investment income Signup and view all the answers

Which document is required for assessing business income?

Cash flow template Signup and view all the answers

What should be included in incidental charges during a loan?

Charges assigned to the loan account Signup and view all the answers

What is the primary purpose of the cash flow analysis?

Evaluate the applicant's ability to repay the loan Signup and view all the answers

Which of the following is a feature of the cash flow analysis process?

It requires estimation of future income Signup and view all the answers

What components are included in the Total Income calculation?

Income from Business, Salary Income, and Other Income Signup and view all the answers

Which method is used for calculating loan eligibility?

Cash flow method Signup and view all the answers

What does FOIR stand for in the context of cash flow analysis?

Fixed Obligation to Income Ratio Signup and view all the answers

When determining the final loan eligibility amount, which of the following factors is NOT considered?

Current market interest rates Signup and view all the answers

What is the maximum FOIR percentage considered in the cash flow assessment?

50% Signup and view all the answers

In the cash flow method, what is the purpose of the triangulated Q & A?

To gather comprehensive information Signup and view all the answers

What qualifies as 'Other Income' in the Total Income calculation?

Income from multiple sources not classified as salary or business income Signup and view all the answers

How is the loan amount derived based on the cash flow assessment?

By considering FOIR and requested tenure Signup and view all the answers

What is the primary factor in determining loan eligibility based on Cash Flow Assessment?

Customer's affordable EMI Signup and view all the answers

What happens to the loan offer after the 90-day validity period?

The case is treated as a new application Signup and view all the answers

Which of the following is NOT a mode of disbursal mentioned?

Bank draft Signup and view all the answers

What is the validity period of the bureau check from the latest date?

30 days Signup and view all the answers

How long is the sanction validity of the offer letter from the date of sanction?

90 days Signup and view all the answers

Which of the following parties is primarily considered when recommending the loan amount?

The Credit Manager Signup and view all the answers

What must happen before a loan is disbursed after the bureau check?

The bureau validity must be verified Signup and view all the answers

Which of these statements is accurate regarding the loan process timeline?

The case reverts to fresh after 90 days if not accepted Signup and view all the answers

Study Notes

Loan Charges and Fees

Foreclosure letter charge is Rs. 200 plus applicable taxes for the soft copy of the foreclosure statement.
Any incidental charges incurred by Criss Financial Limited during the loan tenure are allocated to the loan account.

Loan Approval Process

Waivers or deviations require final approval from the Chief Business Officer (CBO).

Cash Flow Analysis

Income assessment for the applicant and co-applicant follows specific guidelines.
Business income is evaluated using a cash flow template, with triangulation methods to ascertain net income.

Total Income Calculation

Total income is aggregated from:
- Income from business
- Salary income
- Other income

Loan Eligibility Calculation

Utilizes cash flow analysis method, with income and expenses structured in a templatized format.
Final loan eligibility amount is determined by the least of:
- Requested loan amount
- Loan eligibility based on cash flow assessment considering FOIR at 50%
- Customer's affordable EMI
- Loan amount recommended by the Credit Manager

Disbursement and Repayment

The validity of the offer/sanction letter is 90 days from the date of system sanction; cases are treated as fresh post this period.
Bureau validity stands at 30 days until disbursement following the latest bureau check.
Disbursement occurs via IMPS, NEFT, RTGS, transferring funds to the customer's account (applicant/co-applicant).

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Description

This quiz covers the essential details of foreclosure letters, related charges, and the processes involved in obtaining a foreclosure statement. Test your understanding of the financial implications and legal aspects associated with foreclosure.