The Roadmap to Becoming a Credit Analyst with No Experience

India’s financial sector has rapidly grown in recent years. There has been a boom in tech advancements, government reforms, and international and national companies. Businesses need capital to expand, and money-lending organisations have never been busier. Whether it’s retail, corporate financing, or MSME, the credit industry ensures a smooth flow of funds into companies, which leads to financial stability and uninterrupted profitability.

Credit analysts are in high demand. They play a vital role in ensuring that credit is given responsibly to companies and individuals and that funds get channelled towards sustainable projects. The rise of digital lending platforms has also created a demand for credit analysts.

Banks, consultancy firms and fintech companies need competent finance professionals with the expertise and qualifications to work as credit analysts. Automation and artificial intelligence can only do so much. The finance industry needs credit analysts with the foresight and capacity to make complex credit decisions.

Before you join this field, you must first learn how to become a credit analyst.

8 Steps to become a credit analyst with no experience

The credit industry helps to maintain balance in the economy. They loan funds to viable business ventures but ensure they make a good return on their investment. A credit analyst has the knowledge, acumen and research skills to determine the borrower’s creditworthiness. Here is a step-by-step guide on how to become a credit analyst.

Step 1: Understand the role of credit analyst

The job profile is unlike other finance professions, such as finance manager or investment banker. The credit analyst’s main responsibility is to assess the creditworthiness of a business or person. You have to use your skills to analyse the loan application, examine the financial documents and look into risk factors that could affect the loan repayment.

Credit analysts also keep track of market trends and new economic developments that could impact a potential borrower’s ability to make payments. To become a credit analyst, you must understand the job requirements.

Step 2: Acquire the necessary qualifications

An education in finance can teach you how to become a credit analyst. Students who have a bachelor’s degree in finance, accounting, economics or commerce are more suited to the job profile.

Candidates with an MBA in finance can also apply for the post of a credit analyst. Some companies, especially MNCs, prefer hiring professionals with international professional certifications like CFA (certified financial analyst) or FRM (financial risk manager).

Step 3: Develop the core skills

Credit analysts must know the technical skills to carry out their responsibilities. An important part of the job is to read and understand balance sheets, cash flow statements and income statements. Knowledge of financial statement analysis is crucial. You should also know how to use financial software such as MS Excel and risk management systems.

Financial modelling is another relevant skill that can make you a better credit analyst. Improving your expertise is an essential part learning how to become a credit analyst.

Also Read – Is Credit Analyst a Good Job? Salary, Growth & Job Opportunities

Step 4: Understand the industry better

It’s not enough to learn concepts from a finance textbook. You should also gain practical knowledge of how the credit industry operates. You can look for internships or trainee programs in banks or credit rating agencies that offer real-world experience.

You can also analyse case studies with authentic financial statements and credit documents. Another way to learn how to become a credit analyst, is to participate in workshops or online analysis simulations.

Step 5: Connect with like-minded professionals

To understand how to become a credit analyst, it helps to be around experts and peers from the industry. There are specific finance forums and LinkedIn groups online that are good for networking. You can join the IIBF or similar organisations that help finance professionals enhance their skills or network with other industry experts.

Step 6: Work on your resume

Your resume must highlight your coursework, projects and internship or trainee programs. You should also mention your technical skills, such as financial modelling and soft skills, such as analytical thinking and good communication. If you enrol with a coaching institute like Proschool, your training on how to become a credit analyst includes a resume-writing workshop.

Also Read – 7 Top Duties and Responsibilities of a Credit Analyst

Step 7: Practice for your interview rounds

Acing your interview is a critical step in how to become a credit analyst. Before your meeting, you must read up on industry trends and financial concepts. Practice answers to commonly asked interview questions to ensure you sound confident and professional. A coaching institute like Proschool offers mock interview sessions to prepare students to handle the recruitment process.

Step 8: Apply for jobs

You can look for job openings on online recruitment sites or the company’s website. As a fresher, you can apply for roles such as junior credit analyst, financial analyst or trainee in banks, NBFCs and credit rating agencies. Companies like SBI, HDFC and Bajaj Finance often hire freshers with CFA qualifications. Once you receive an offer letter, you are on your way to becoming a credit analyst.

Step 9: Stay updated on the latest information

When you work in finance, you should be aware of the most recent news and developments. Read the financial newspapers and follow finance-related websites and social media handles to stay updated. Also, ensure you know the latest RBI policies, as they can impact credit rates and terms.

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

6 Benefits of becoming a credit analyst

1. Credit analysts are essential players in key sectors such as banking, finance, and investment.
2. There are plenty of stable job opportunities for credit analysts in the industry.
3. Over time, analysts can move to leadership roles such as credit manager, risk manager, department head, VP and CFO.
4. Your skills and expertise as a credit analyst can lead to exciting prospects in other fields, such as corporate finance, risk management and sales.
5. Credit analysts make lucrative salaries with bonuses and perks.
6. The job comes with a good work-life balance, unlike other finance careers.

Let Proschool Help You Become A Credit Analyst

One of India’s leading coaching institutes, Proschool offers comprehensive learning programs to empower students with the necessary skills and knowledge. Here, you receive a complete education on how to become a credit analyst.

The professors at Proschool are experienced professionals and skilled instructors who use active learning methods to teach. They also incorporate real-world projects and case studies so that students get a clear understanding of all the concepts. Proschool provides additional training in relevant tools such as financial modelling, which is an essential part of the job.

Here are a few more advantages of registering with Proschool:

• The institution has over 15+ coaching centres across India.
• You can enrol for online classes as well.
• Students can access multiple resources such as mock tests, practice papers, learning videos, prep books and lots more.
• Professors provide customised study plans, doubt-clearing classes and revision sessions.
• You receive resume writing tips, and mock interviews are held to get you ready for the job market.
• Proschool’s exclusive placement program connects students with industry recruiters.

Want To Become A Credit Analyst? Let Proschool Help You Reach Your Destination!

FAQs

How much do credit analysts earn as a starting salary?

Starting salaries for credit analysts can vary depending on the type of company, job location and qualifications. Candidates with an MBA or CFA certification can earn more. Firms in big cities like Mumbai and Delhi also pay more than smaller places. However, on average, the annual salaries for entry-level positions are between Rs 3 lakhs to Rs 6 lakhs.

Which companies hire credit analysts in India?

Credit analysts are employed by different finance companies to assess the creditworthiness of loan applicants. Here are a few organisations that hire:

1. Banks: SBI, Citibank, HSBC, ICICI, Axis, Kotak Mahindra Bank and Yes Bank.
2. NBFCs: Tata Capital, L&T Financial Holdings and Bajaj Finserv.
3. Credit rating agencies: CRISIL, India Ratings and Research and ICRA
4. Investment and finance firms: Goldman Sachs, Morgan Stanley and JP Morgan Chase

How can I become a credit analyst with no experience?

The right education is the first step to becoming a credit analyst. A bachelor’s degree in finance/commerce/accounting is accepted by companies during recruitment.

You must have the key skills for the role, such as knowledge of financial statements, credit risk analysis, and awareness of industry trends. Apply for junior positions, and once you gain enough experience, you’ll be promoted to credit analyst.

Conclusion

There are ways you can learn how to become a credit analyst without experience. The right qualifications and skills are needed to get started in this career. The CFA certification also helps to elevate your resume and get you on the shortlist for an interview. The syllabus has relevant topics such as financial reporting, equity valuation, fixed-income analysis, and risk analysis. It is the perfect course for budding credit analysts ready to take their place in the industry.