Credit Analyst Job Overview

Job Responsibilities

        Credit Analysts analyse and assess the financial statements and credit history of existing and potential clients. Hence, they collect the market and economic data Understanding of business, economic, and industry risk.

        They consult and negotiate with clients regarding financial transactions, payment terms, and credit limits. Moreover, they create reports, summaries, presentations and process documents to display results.

       They are expected to structure deals and perform risk assessments and also review credit applications and perform credit checks. Most importantly, they are involved in systems and processes for gathering and storing data for future analytic projects.

Day to Day Tasks

           Typically, day to day tasks of Credit Analyst involves:

  1. Firstly, they complete loan applications, including credit analyses and summaries of loan requests, and submit to loan committees for approval.
  2. After that, they consult with customers to resolve complaints and verify financial and credit transactions.
  3. Then they also review individual or commercial customer files to identify and select delinquent accounts for collection.
  4. Secondly, they  generate financial ratios, using computer programs, to evaluate customers’ financial status.
  5. After that, they analyze credit data and financial statements to determine the degree of risk involved in extending credit or lending money.

Preferred Degree

      To identify the preferred degree for this job profile, a survey was conducted with 98 respondents along with secondary research on popular job portals like Linkedin, Naukri.com, Indeed.com, etc. The graph below helps us understand the educational qualifications of current workforce in this profile.

(*Above data obtained from Payscale.com and also verified by survey results)

          It was identified that about 24.3% of employees currently working in the profile of Credit Analyst are a CA or/and CFA. About 24.6% of them are a graduate in commerce (i.e. BCom, BBI, BFM, BBI). Thus, about 50% of current workforce are commerce graduates.

       About 15.9%  of Credit Analyst have a Bachelors in Economics and Statistics. 19.5% candidates have an MBA in Finance. It can be safely assumed that this is a profile which requires strong academic inclination towards Finance, Economics and Statistics.

      However, note that about 11.7%  candidates are from Non-Finance Background. Thus there are lot of engineers, BSc. Graduates as well who work in this profile.Usually they pick up these skills through external certifications. 

Important Subjects & Academic Courses

Financial Risk Management

Cost Accounting

Corporate Finance

Banking Management

Behavioral Finance

Corporate Governance

Macro and Micro Economics

Business Valuations

Fixed Income Markets and Securities

Acquisitions and Mergers

Advance Statistics

Easy Access to top finance management of the company in developing strategies .

Decent Compensation with good opportunity to grow.

Opportunity to handle confidential information of financials of the company

Long hours due huge level of responsibility, poor work-life balance

Sedentary Job plus too much Stress leading to health hazards.

Extreme attention to detail required, little opportunity to be creative.

Job Demographics

        Analysis on demographics of workforce working in this profile indicates that about 12.9% of employees working as a Credit Analyst choose this profile as an Early Level Career Profession (i.e Within 0-2 Years of Job Experience)

       About 57.2% of the employees working in this profile join this profile during Early Career (i.e Between 2-4 Year of Job Experience). Thus more than 70% of workforce are employed in this Job Profile during “Early Years” of their careers.

        Mid Career Professionals with an experience between 5-7 Years in an Industry contribute to only 23.3% of workforce for this profile. And less than 10% of experience professionals having experience of more than 8 Years work as Credit Analyst.

(*Above data obtained from Payscale.com and also verified by survey results)

      The Gender breakdown in this profile in India is 70% Male vs. 30% Females.

      Financial profiles on an average are seeing a strong growth in terms of women employment over the past few years mainly because of improved compensation, security and flexible work timings provided by the corporate companies. 

Salary Details

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