How to become credit analyst in India, Courses, Types, Abroad, Salary 2023

Types of Credit Analysts

Various jobs are offered to the Credit Analysts in banks, firms, financial organizations, companies and many more. Let us discuss some of the types of Credit Analysts: 

Commercial Credit Analyst

• The job is commonly also referred to as Risk analyst. They analyse and evaluate the commercial loan requests and decide whether to approve or deny the applications.
• Mostly the Government authorized agencies, banks and commercial lenders recruit them. In short they determine the ability of the customers who can and cannot repay the loans.
• Candidates with a diploma or bachelor degree are eligible to apply for the job. Having skills and technical knowledge in Mathematics, Accounting and Finance helps the candidates in becoming a good commercial credit analyst.

• Banks, firms, industries, companies, institutions and organizations also recruit the candidates having a MBA degree. On analysing the data the candidates must be able to assess whether the company or individual is financially fit to grant and receive the loans and debts.

Credit Research Analyst

• They are responsible for analysing the credit worthiness of an individual. The credit limit allowed is checked and reviewed, for all the individuals. Through this they can determine the position of an individual if he can pay back the debt or not.
• Mostly the commercial and investment banks, credit rating agencies recruit credit Research analysts. So the credit research analysts must be able to conduct due diligence about the companies or individuals to offer them loans and repayments.
• They must use analytics and formulas to assess the risk factors of the companies or individuals to avoid losses. The creditworthiness is quite important to the lenders so they can decide whether or not to grant loans.

• Credit Research Analysts go through the credit history, transactions, information and balance sheets of all the companies and individuals.

Credit and Collections Analyst 

• The role of a credit and Collections analyst is to assess the riskiness of a company or individual for allowing credit or collecting the repayments. By analysing the account statements, transactions and credit scores plans will be created consequently for the repayment of debts.
• Mostly the collection agencies recruit them in order to make sure of the repayments. They also take up the collection calls in order to ensure the repayments. In short they serve as mediators between providers and customers.
• Maths and Communication skills are mostly important for the candidates to work in this role. The candidates will be given training for up to 3 months regarding the work. So once the training is over they are recruited as employees.

How to become a Credit Analyst in India? 

The career as a credit analyst is becoming highly popular in India. This has been partially attributed to the increase in the overall business activities and the overall trend of increase in the number of startups in India. There are a wide range of courses that the candidates can take up in India in order to become a financial analyst. Most of the courses preferred by the candidates are generally undergraduate courses. However some companies in India prefer to have candidates with masters degrees. 

Let us understand the preparation candidates must take at various education levels in order to become credit analysts in India.

School Level Preparation 

Students aspiring to become credit analysts can start the preparation from school Level itself. It is ideal that the candidates start their preparation in various subjects related to the various core finance subjects such as Accounts, Business Economics and other management related subjects.

• In order to become a credit analyst the candidates must have knowledge about the financial markets as well as the various nooks and crooks of the financial statements. 
• Thus, it is preferable for the students to choose commerce as their stream in their 10+2 level. However candidates from the science and arts stream can choose relevant courses in Finance and pursue a career as a credit analyst. 
• For some courses at the undergraduate level, the candidates must have mathematics or statistics as part of compulsory subjects 
• Most of the top colleges choose students based on the marks scored in entrance examinations. So it is best to start preparing for the exams like CUET, BHU UET from the 11th itself.
• There are some colleges that choose candidates based on the merit list. Thus, it is necessary for the candidates to pass their 12th or equivalent examination with good marks (at least 70%). Also the candidates can improve their overall competence ny taking up various certificate courses such as tally, etc

How to Become a Credit Analyst in India after 12th?

After completing their 12th or equivalent examination the candidates can take up various courses at the undergraduate and postgraduate level. Most of the candidates prefer to take up the full time course as it allows them to have better career prospects. 

UG level Preparation 

On the completion of 12th students can pursue various Undergraduate courses from Banking, Accounting and Finance streams that would help them get well versed in the subjects that are necessary to become a Credit analyst.The following are the undergraduate preparation that the candidates can take

• Apply for the entrance examinations CUET, BHU UET and qualify in it for admissions into the UG courses. Choose BCom in Financial Accounting or BSc in Finance or other relevant stream.
• On the selection of desired specialization, students must work hard to score a minimum aggregate of 60% marks in order to get job offers from top companies.
• One thing that the candidates can do during the course is that they can start preparing for entrance examinations for the various post graduttre courses such as MCom or MBA. The candidates should focus on specialization pertaining to the finance field. The popular entrance exams are BHU PET, CAT, etc.

• Similarly the candidates can take up various professional courses such as CA, CS or CFA, in order to improve their job prospects.

PG level Preparation 

Though most of the companies and organizations prefer Bachelor’s degree as the educational qualification for a Credit analyst job some students continue studying PG in order to get superior jobs and better pay.

• The candidates can pursue Master of Commerce Finance, MCom Accounting and Finance, MSc Banking and Risk courses.
• Even for the admissions into Master’s students must have to appear for the relevant entrance examinations such as CAT and CET.
• After getting admission in the desired course the candidates can work in various accounting or consultancy firms on a part time basis so that they can get adequate exposure. 
• Most of the candidates also go for various internship projects during the post graduate courses.

• Those who wish to research more about the financial market and related fields can opt for the PhD or MPhil Courses. 

How to Become a Credit Analyst Abroad 

Candidates often prefer to pursue Credit Analysis courses from the foreign nations. The reason behind this is that the foreign universities provide the candidates with better infrastructural support along with research facilities and of course a better payment. 

Let us see the various courses that the students can pursue in different foreign nation to become a successful credit analysts

UK 

The UK offers a number of Banking, Accounting and Finance courses that can be pursued by the Indian students. However, the students who want to study in the UK should keep the following things in mind before opting for admissions.

Educational Requirements

• In Case of admission to the undergraduate courses the candidates must have passed 10+2 or its equivalent with a minimum of 70% aggregate marks from a recognized board. In some cases the candidates are required to score over 80% in their 12th.
• Some colleges prefer the candidates to have mathematics and english at their 10+2 level . The minimum score required for these two particular subjects are generally mentioned by the individual colleges.
• In case of post graduation degree the candidates need to pass the respective undergraduate course with at least 65% marks. 

Other Requirements 

• Some courses might require their candidates to have prior work experience. Accordingly, proof of employment is to be submitted.

• Apart from work experience most colleges require the candidates to submit their list of academic references, letter of recommendation and a state of purpose. 

Application Process 

• Applications can be submitted online.
• Students can visit the official website of preferred college and follow the application process.
• A pre interview or pre assessment will be conducted by some of the colleges. So the students must submit them within the deadline.
• Follow the instructions as mentioned by the Universities. Out of 50,000 students who apply for various Universities in the UK only 15,000 students make it.
• So make sure you give your best in the process involved. Earn a Bachelor’s or Postgraduate degree and follow your career.

Top colleges 

Canada 

Canada offers a number of Banking, Accounting and Finance courses that can be pursued by the Indian students. However, the students who want to study in Canada should keep the following things in mind before opting for admissions.

Educational Requirements 

• In case of admission to the undergraduate courses candidates must have passed 10+2 or its equivalent with a minimum of 60% aggregate marks from a recognized board. In some cases the overall mark can go upto 75 to 80%.
• In most cases the candidates are required to pass their 12th with mathematics as well as english as their compulsory subjects. 
• In the case of admission to the post graduate program the candidates must have passed their graduation program from a recognised university with at least 3.0 GPA (Around 80%) to get admission in top colleges.

• The candidates need to pass English proficiency tests such as IELTS and TOEFL. In some cases a good score in GRE/CAEL/CAN TEST exams is also required.

Other Requirements 

• The candidates are required to submit their resume as well as all their transcripts.

• The candidates are required to submit their relevant work experience certificate, personal statement about what their goals are and letter of recommendation and list of references.

Admission Process

• Applications can be submitted online.
• Students can visit the official website of preferred college and follow the application process.
• A pre interview or pre assessment will be conducted by some of the colleges. So the students must submit them within the deadline.
• Students must apply as fast as possible to the Visa as they will be asked by the immigration. Submitting the required applications and following the instructions within the deadlines is very important to get admissions.

Top colleges 

Australia 

Australia offers a number of Banking, Accounting and Finance courses that can be pursued by the Indian students. However, the students who want to study in Australia should keep the following things in mind before opting for admissions.

Educational Requirements 

• In the case of admission to the undergraduate courses, candidates must have passed 10+2 or its equivalent with a minimum of 60% aggregate marks from a recognized board.
• The candidates need to have maths in their 12t for admission to some of the top colleges in Australia. 
• In the case of admission to the post graduate programs the candidates are required to pass the graduate program from a recognized university with a minimum aggregate score of 60%.For the Postgraduate courses students must have a Bachelor’s degree in Accounting, Banking and Finance courses. In some cases the score can go upto 75% or more. The aggregate score depends on the college and universities.

• The candidates need to pass English proficiency tests such as IELTS and TOEFL. In some cases a good score in GRE/GMAT exams is also required.

Other Requirements 

• Apart from the educational requirements the candidates are required to provide letters of recommendation, list of references.
• In some cases the candidates are required to submit documents pertaining to their previous work experience. 

• Candidates are also required to submit a statement of purpose.

Admission Process 

• Applications can be submitted online.
• Students can visit the official website of preferred college and follow the application process.
• A pre interview or pre assessment will be conducted by some of the colleges. So the students must submit them within the deadline.
• At the time of admission originals of the required documents must be submitted. Those are:

1. Mark sheet of the qualifying examination.
2. Completed application form
3. English proficiency test scores
4. Copy of passport and Visa

Benefits of a career as Credit Analyst 

One of the main things that is required to run any business is the capital investment. The organisations involved in banking, accounting and finance analyze the earnings and repayment of the loans and debts. All these responsibilities fall under the domain of credit analysts. In addition to the risk, responsibilities and hard work involved in this work there are a lot of benefits as a Credit Analyst.

Let us take a look at them:

Salary

At entry level, a credit analyst earns between INR 5,00,000 to INR 14,00,000. The average salary actually depends on the firms where the credit analysts are employed. The website Payscale postulates that credit analysts in India earn INR 601,000 per annum. The employees in top firms can earn more than INR 24,00,000 per year. Working days may be tiring but they also get bonuses and allowances in between for holidays. Also they are allowed other perks such as insurances, heat check ups.

Job security

Finance is one of the constantly growing fields in terms of employment. As long as there is Importance for money credit analysts will always be in demand. Increasing population leads to increase in credit and debit. And with the initiative of the Indian government in promoting various small scale industries and Start ups, the job scope of credit analysts in India will only increase in the future. This in turn leads to demand in employees for maintaining the data. Hence, improve job security.

Positive Impact of the Career

Credit analysts describe the positives and negatives in the financial system. The credit analysts basically help the companies or the organisation to understand about the creditworthiness of individuals. They help to prevent creation of bad debt for the organisation. So there are no difficulties in allowing credits or paying back the debts. So preventing various financial organisations from bad debt and eventual bankruptcy brings a positive impact on the career of an individual. 

Unique Experience

Financial system is the underlying backbone for the world economy. The credit analysts are one of the main individuals that help the system run continuously without collapsing by properly judging the credit worthiness of individuals. Only the analysts can avoid financial risks of an organization through proper analysis and allow them to invest property. Thus, it creates an unique experience for them. 

Skills required to be a Credit Analyst

• Financial and Quantitative Skills
• Due diligence
• Proficiency in Software
• Ability to work under pressure
• Accounting skills
• Computing skills
• Communication skills
• Knowledge in risk analysis
• Documentation and organization analysis