Credit Analyst Jobs: Top Companies Hiring, Roles, Salaries & More

It is no secret that without credit, economies would collapse. Money lending is an ancient business that stands the test of time and relevance. Businesses need a steady flow of credit to carry out their operations seamlessly. People need credit cards or loans to achieve their financial goals as soon as possible.

The world runs on credit. We all need it. However, financial companies that lend money to the public must exercise proper cautionary measures. They need to be certain they are getting their investment back without any loss or risk. While everyone may want a loan, not everyone will get it. You have to go through a process when experts determine whether or not you qualify for credit.

The credit analyst position plays an important role here. He is the financial professional who gets to decide which credit application is approved or rejected.

It is a challenging job that offers several lucrative opportunities. Top companies such as HDFC Bank, Crisil, ICICI Bank, Barclays and HDFC are just a few organisations that hire credit analysts, preferably those with a CFA certification.

So what are the different types of credit analyst jobs? And how can you get one? Does this career have a great future? Let’s find out.

Types of Credit Analyst Positions

There are three types of credit analysts, and each one has specific roles and responsibilities.

1. Commercial Credit Analyst

Job profile:

A commercial credit analyst is a professional who investigates and analyses all loan applications in the commercial sphere. This is a highly coveted credit analyst position as you get hired by some of the leading financial companies and are offered exciting job prospects.

Job responsibilities:

• To examine the potential and future risks involved with each loan request.
• Help government firms, money-lending organisations and commercial banks to make credit-based decisions.
• To confirm the financial background of each company or individual seeking a loan to ensure their economic stability.
• Ensure the creditworthiness of every customer.

Companies to work for:

• You can join private equity firms, commercial lenders, banks, credit rating agencies and many other similar institutions.
• Corporations such as Accenture, Axis Bank, JP Morgan Chase, Barclays and Citigroup hire professionals to work in commercial credit analyst jobs.

Credit analyst salaries:

1. • Salaries vary depending on the calibre of the company you work for, your experience level, negotiation skills and office location.
   • The average salary for commercial credit analysts is roughly around Rs 6 lakhs to Rs 8 lakhs.

Also Read – Credit Analyst | Process, Skills, Decisions, Scope, Courses.

1. Credit Research Analyst

Job profile:

This credit analyst position is for professionals who are proficient in conducting research and due diligence. It is perfect for finance experts who pay great attention to detail and can analyse financial data.

Job responsibilities:

• Checking and evaluating the credit limits for each borrower.
• Conducting due diligence on every customer or company to ensure all paperwork submitted is accurate and correct.
• Assess risk factors using financial ratios and analytics.
• Analyse the client’s previous credit history, financial transactions and company balance sheets.

Companies to work for:

• You can apply for credit analyst jobs with investment banks, commercial banks and credit rating agencies.
• Crisil, JP Morgan Chase, Morningstar and Kotak Mahindra Bank are a few of the many top companies that require credit research analysts.

Credit analyst salaries:

1. • Salaries vary depending on the calibre of the company you work for, your experience level, negotiation skills and office location.
   • Average annual salaries for credit research analysts range between Rs 10 lakhs to Rs 17 lakhs.

Also Read – The 5 Cs Of Credit Simplified! And Here’s Why They matter!

1. Credit and Collections Analyst

Job profile:

This credit analyst position involves working with collection agencies while assessing a borrower’s ability to make repayments or eligibility for extending credit limits.

Job responsibilities:

• To create a plan for loan repayment for the client after analysing the financial statements, credit scores and various transactions.
• The analysts serve as mediators, ensuring the borrowers and lenders are on the same page.
• Contact clients when payments are due or delayed.

Companies to work for:

• Most credit and collection credit analysts work for collection agencies.
• Some of the leading agencies such as Adept Guild Service Partners, Adina Enterprises and Citi Enterprises offer credit analyst jobs for this type of work.

Credit analyst salaries:

• • Salaries vary depending on the calibre of the company you work for, your experience level, negotiation skills and office location.
  • Analysts can make between Rs 6 lakhs to Rs 8 lakhs a year.

Also Read – Credit Analysis Essentials: Fundamentals, Importance & Techniques

How to become a credit analyst

Credit analyst jobs are in high demand in the finance industry. This means, only qualified and proficient professionals make the cut during the recruitment process. You need to understand credit terms and concepts, know how financial markets work and have the ability to read financial statements. Here are the skills and qualifications for the credit analyst position.

Qualifications

• Graduate in commerce or financial accounting
• Masters in commerce
• MBA in finance
• CA
• FRM
• CFA

Skills:

• High level of analytical reasoning and critical thinking
• Proficiency in maths and calculations
• Strong eye for detail
• Technical financial knowledge
• Software skills for data analysis, financial modelling and risk management

Proschool’s CFA course prepares you for the credit analyst position

It has been established that the CFA program is the preferred certification for many credit analyst jobs. However, it can be a challenging course to clear. You have to understand complex concepts, master industry-relevant skills and gain in-depth technical knowledge.

Proschool makes learning the CFA syllabus easier and more manageable. As one of the country’s best coaching classes, you can expect a high standard of resources, facilities and faculty. The teachers are industry professionals who teach using active learning methods and encourage the practical application of theoretical concepts. Students are provided with customised study plans for the latest updated version of the curriculum.

Proschool also offers lessons in financial modelling and other finance software to help strengthen your resume and make you industry-ready.

Some of the many benefits of studying with Proschool:

• Coaching centres are available in all the major cities in India including Mumbai, New Delhi, Kolkata, Bangalore, Chennai and Pune.
• If you are unable to visit a learning centre, you can register for Proschool’s interactive online classes.
• Proschool helps students prepare for the exam through rigorous preparation. The institute offers over 2,000 practice papers and 5 mock tests.
• Additional resources include a library, prep books and learning videos.
• Proschool’s placement program is an excellent platform for certified students to access credit analyst jobs.
• There is a strong focus on recruitment training as students learn how to give job interviews and write professional resumes.

Conclusion

As discussed earlier, credit is an important necessity in our economy. It is the fuel that helps businesses stay afloat. This is why credit analyst jobs will never become redundant or be replaced by artificial intelligence. They are highly relevant to the finance industry. The role they play is vital in ensuring minimal risks occur. While the credit analyst position is sought after by many financial aspirants, those who are CFA holders are preferred hires. If you want to venture into the exciting world of credit analysis, get started on your CFA certification today.

FAQs

What is the salary of a credit analyst in HDFC Bank?

The salaries for credit analysts at HDFC Bank are in the range of Rs 4 lakhs to 16 lakhs a year. The average annual salary is around Rs 9 lakhs.

Is there a demand for credit analyst jobs?

There is a huge demand for credit analysts as all financial organisations need a financial expert to evaluate risks and verify data before offering credit or loans. Many CFA holders covet the credit analyst position for its lucrative opportunities and career scope.

What is the future of a credit analyst?

Credit analyst jobs can lead to better prospects in the future. With experience, analysts can move to positions such as manager, director, VP and CFO. You can also move into other fields such as relationship management, banking, corporate finance, sales and many more. Your skills and knowledge can be extended to several high-profile roles in the industry.

Do credit analysts work long hours?

Credit analyst jobs come with a good work-life balance. Most professionals work around 45 hours a week. There may be times when you will be required to work a longer day due to excess work but on average, you will be able to enjoy an 8 to 9-hour work day.

How can I enhance my skills as a credit analyst?

Most professionals improve their skills when they enrol with a reputed coaching institute. Through practice and careful study, you can work towards enhancing your abilities to be a proficient credit analyst. Once you apply for the credit analyst position, you will also learn to sharpen your skills on the job.

What experience is required to be a credit analyst?

At the entry-level, you are hired as a junior credit analyst. Once you collect a few years of experience, you are promoted to credit analyst, and after that to senior credit analyst.