To select and classify customers must understand and understand what the evidence to be evaluated. This should be the relevant and key, so as to determine the client's classification practices.
These characteristics or qualities of the client will be tailored to the specific objectives of the credit evaluator. For example, if the claim is requested to finance a project, the main features or aspects assessment are considered "net generation of foreign exchange", "degree of decentralization, tax generation and job creation" and so on.
In the case of selecting a natural person, the main qualities to be considered are income, employment, residence, marital status, age, References, your payment history and reputation. Each premise will determine a grade in their evaluation and selected according to the method of classification is assigned a value. The result will guide the conclusion of giving you credit.
5.1. PROCEDURE USE OF RATING FORMS
When using forms of qualification, the loan officer in the appropriate column recorded their views on the credit quality. These columns can be objectively: good fair or poor. They can also be given numerical ratings, 1.2 or 3. only suggests a division into three parts, as classification can be more confusing to forecast what might contribute to the outcome. The description of the general classification standards suggested is that we expose below:
GOOD : can have a range of categories between 17 and 20 or 8 to 10 were assigned to those customers who meet all requirements for gift be credit. The difference in rank is defined according to the credit limit to be eligible and policies established by the institution.
These clients usually have good credit and references are good, so they are always approved credit are extended or renewed.
OK : Consider the range between 12 and 16 or 6 to 8 taking into account the qualities that indicate that credit should be paid only after abnormal difficulties or delays as a result of persistent efforts for recovery.
for filing a protest or older who can doubt the payment, but generally are problems that have happened and not out of sight but they are a matter of observation.
POOR: consider those qualities that suggest that credit will not be canceled even when allocating efforts to recover the investment provided through hire purchase.
This type of customer to prove not only short-term problems with regard to credit risk, most likely at higher risk that there will not pay.
The qualities and characteristics that are not project a restricted model, but rather, must adapt to the needs of the evaluator and the specific characteristics of the type of credit requested. The analyst should try to consider the qualities separately, selectively and priority in the evaluation process.
The objective of credit rating is the achievement of a prediction that is reflected in the best possible overall assessment, considering all the evidence available. The end result is a credit decision, after considering all the evidence and analyze it properly predicts the experience credit that is reasonably anticipated.
prediction or prognosis may not be accurate, however it is essential to make efforts in research, testing and confirmation of the qualities considered in a proposal, qualification especially when it assumes a probability of risk in granting credit.
5.2. METHODS OF QUALIFYING
Each company has its own evidence, therefore develop its own rating system that suits its evaluation system of its customer base.
However we can consider the methods applied: the percentage allocation method, the method of points and key system.
a) Percentage Method
Whereas a degree, determined by a percentage to each aspect, feature or factor assessment determines the total 100%. But qualify to be eligible for credit with a higher percentage that the company considers as its policies, rules and procedures.
b) Method of Scoring
Consider a number like rating system for each factor or aspect of valuation, the maximum total could be 10, 20 or 100 to qualify for the granting of credit line when more than half or more of the score set.
c) Method of Key
Identifies and qualifies customers by establishing a code or key ranges according to the factor considered by the company. It also establishes a standard of confidentiality of the wing Dad categorization difficulty that for definition.
These characteristics or qualities of the client will be tailored to the specific objectives of the credit evaluator. For example, if the claim is requested to finance a project, the main features or aspects assessment are considered "net generation of foreign exchange", "degree of decentralization, tax generation and job creation" and so on.
In the case of selecting a natural person, the main qualities to be considered are income, employment, residence, marital status, age, References, your payment history and reputation. Each premise will determine a grade in their evaluation and selected according to the method of classification is assigned a value. The result will guide the conclusion of giving you credit.
5.1. PROCEDURE USE OF RATING FORMS
When using forms of qualification, the loan officer in the appropriate column recorded their views on the credit quality. These columns can be objectively: good fair or poor. They can also be given numerical ratings, 1.2 or 3. only suggests a division into three parts, as classification can be more confusing to forecast what might contribute to the outcome. The description of the general classification standards suggested is that we expose below:
GOOD : can have a range of categories between 17 and 20 or 8 to 10 were assigned to those customers who meet all requirements for gift be credit. The difference in rank is defined according to the credit limit to be eligible and policies established by the institution.
These clients usually have good credit and references are good, so they are always approved credit are extended or renewed.
OK : Consider the range between 12 and 16 or 6 to 8 taking into account the qualities that indicate that credit should be paid only after abnormal difficulties or delays as a result of persistent efforts for recovery.
for filing a protest or older who can doubt the payment, but generally are problems that have happened and not out of sight but they are a matter of observation.
POOR: consider those qualities that suggest that credit will not be canceled even when allocating efforts to recover the investment provided through hire purchase.
This type of customer to prove not only short-term problems with regard to credit risk, most likely at higher risk that there will not pay.
The qualities and characteristics that are not project a restricted model, but rather, must adapt to the needs of the evaluator and the specific characteristics of the type of credit requested. The analyst should try to consider the qualities separately, selectively and priority in the evaluation process.
The objective of credit rating is the achievement of a prediction that is reflected in the best possible overall assessment, considering all the evidence available. The end result is a credit decision, after considering all the evidence and analyze it properly predicts the experience credit that is reasonably anticipated.
prediction or prognosis may not be accurate, however it is essential to make efforts in research, testing and confirmation of the qualities considered in a proposal, qualification especially when it assumes a probability of risk in granting credit.
5.2. METHODS OF QUALIFYING
Each company has its own evidence, therefore develop its own rating system that suits its evaluation system of its customer base.
However we can consider the methods applied: the percentage allocation method, the method of points and key system.
a) Percentage Method
Whereas a degree, determined by a percentage to each aspect, feature or factor assessment determines the total 100%. But qualify to be eligible for credit with a higher percentage that the company considers as its policies, rules and procedures.
b) Method of Scoring
Consider a number like rating system for each factor or aspect of valuation, the maximum total could be 10, 20 or 100 to qualify for the granting of credit line when more than half or more of the score set.
c) Method of Key
Identifies and qualifies customers by establishing a code or key ranges according to the factor considered by the company. It also establishes a standard of confidentiality of the wing Dad categorization difficulty that for definition.
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