Foreclosure Processes Overview
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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?

    <p>Investment income</p> Signup and view all the answers

    Which document is required for assessing business income?

    <p>Cash flow template</p> Signup and view all the answers

    What should be included in incidental charges during a loan?

    <p>Charges assigned to the loan account</p> Signup and view all the answers

    What is the primary purpose of the cash flow analysis?

    <p>Evaluate the applicant's ability to repay the loan</p> Signup and view all the answers

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

    <p>It requires estimation of future income</p> Signup and view all the answers

    What components are included in the Total Income calculation?

    <p>Income from Business, Salary Income, and Other Income</p> Signup and view all the answers

    Which method is used for calculating loan eligibility?

    <p>Cash flow method</p> Signup and view all the answers

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

    <p>Fixed Obligation to Income Ratio</p> Signup and view all the answers

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

    <p>Current market interest rates</p> Signup and view all the answers

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

    <p>50%</p> Signup and view all the answers

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

    <p>To gather comprehensive information</p> Signup and view all the answers

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

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

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

    <p>By considering FOIR and requested tenure</p> Signup and view all the answers

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

    <p>Customer's affordable EMI</p> Signup and view all the answers

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

    <p>The case is treated as a new application</p> Signup and view all the answers

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

    <p>Bank draft</p> Signup and view all the answers

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

    <p>30 days</p> Signup and view all the answers

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

    <p>90 days</p> Signup and view all the answers

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

    <p>The Credit Manager</p> Signup and view all the answers

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

    <p>The bureau validity must be verified</p> Signup and view all the answers

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

    <p>The case reverts to fresh after 90 days if not accepted</p> 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.

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