ICICI- Module 2

One of the limitations of credit scoring is:

• It is expensive

• It doesn’t consider qualitative judgment

• It’s slow and manual

• None of these

A stable cash flow in a small business loan application indicates:

• High risk

• Low risk

• Irrelevant for scoring

• Declining turnover

Which of the following best defines a credit score?

• A measure of profitability of a borrower

• A number that predicts the likelihood of loan repayment

• A record of customer service behavior

• A score assigned based on customer age

Which factor typically carries the highest weightage in a consumer credit scoring model?

• Employment Stability

• Income Level

• Credit History

• Age

A borrower with a credit score of 800 is typically categorized as:

• High Risk

• No Risk

• Medium Risk

• Low Risk

Which of the following is NOT a important usual criterion in small business loan scoring?

• Industry Risk

• Credit Score

• Profit & Loss Account

• Residential Address

What does a credit score below the cut-off usually indicate?

• The borrower will surely repay

• The bank should increase the loan limit

• The borrower is risky

• The borrower must be given interest subsidy

Which of these credit bureaus operates in India?

• CIBIL

• FICO

• Moody’s

• Fintech

What is the usual credit score range used by Indian credit bureaus?

• 1 – 100

• 0 – 500

• 300 – 900

• 1000 – 2000

The “gray area” in credit scoring refers to:

• Borrowers with no PAN card

• Borrowers with a very high score

• Borrowers with borderline or uncertain scores

• Borrowers from rural areas